PERTH, AUSTRALIA / ACCESSWIRE / January 16, 2023 / MARTIN HORGAN, CEO, COMMENTED: “Today’s ruling on the constitutionality of Egyptian Law No. 32 is most welcome. We are delighted to now be in a position to request that the challenge to the validity of the exploitation license issued by a third party in 2011 under the Sukari Concession Agreement”.
Egyptian Law No. 32 of 2014 (“Law 32”) was confirmed as constitutional by the Supreme Constitutional Court of Egypt (“SCC”) on January 14, 2023, and has been challenged since 2014
· Law 32 provides that third parties are prevented from legally challenging contractual agreements between the Egyptian government and one or more investors, such as the Sukari Gold Mine Concession Agreement (“Concession Agreement”).
The SCC ruling grants Centamin the right to request the Supreme Administrative Court (“SAC”) to rule that the challenge to the 2011 Concession Agreement is now legally inadmissible on the grounds that the original claimant did not have the capacity to file the claim as it was. is not part of the Concession Contract
In accordance with the provisions of the Egyptian Civil Procedure Law, Centamin’s subsidiary PGM will imminently submit a request to the SAC to resume the appeal proceedings and request the SAC to reject the original case in its entirety in accordance with the provisions of Law 32
· Operations at the Sukari gold mine are not affected and continue as normal.
Sukari Gold Mine Concession Agreement Case
The Concession Agreement between the Egyptian government, the Egyptian Mineral Resources Authority (“EMRA”) and Centamin’s Egyptian subsidiary, Pharaoh Gold Mines (“PGM”), was enacted by the Egyptian Parliament under special law No. 222 of 1994.
· On September 29, 2011, an Egyptian private person initiated proceedings in the Administrative Court against the Ministry of Petroleum and Mineral Resources (“MoP”) and EMRA, in which the person requested the annulment of the Concession Agreement. The same individual also instigated similar claims against several other international companies in Egypt around the same time, most notably in connection with privatizations that took place during the administration of President Hosni Mubarak (1981-2011).
· On October 30, 2012, the Administrative Court, as a court of first instance, held that, although the Concession Agreement was valid, the MoP and the EMRA had not presented sufficient evidence to demonstrate that the 160 km2 The exploitation lease between PGM and EMRA had received the approval of the corresponding Minister as required by the Concession Agreement.
· In November 2012, Centamin’s subsidiary, PGM immediately joined the proceedings and filed, with EMRA and the MoP, a further appeal against the ruling (the “Appeal”) and submitted a copy of the mining lease agreement. Sukari that clearly shows that the 160 km² exploitation lease was approved by the MoP.
· On March 20, 2013, the SAC unanimously decided to stay the decision of the lower court until the SAC rules on the Appeal. Operations at the Sukari gold mine have continued without interruption.
· On June 28, 2016, the Appeal was suspended indefinitely pending the outcome of the SCC’s decision on the constitutionality of Law 32. By virtue of the fact that the constitutionality is confirmed, the dismissal of the proceedings would be requested.
Egyptian Law No. 32 of 2014
In April 2014, the former interim president, Adly Mansour, enacted Law 32, which prevents third parties from challenging contractual agreements between the Egyptian government and investors. The law applies to all prospective cases and to all active cases before the courts in which a final judgment has not been rendered.
In July 2014, the Egyptian Center for Economic and Social Rights (“ECESR”) (a non-governmental body whose objective is to protect the economic and social rights of workers) challenged the constitutionality of Law 32 before the Egyptian SCC.
Delays occurred as the SCC became overwhelmed with cases following a period of political turmoil between 2011 and 2014 following Hosni Mubarak’s government and before the current stability under Abdel Fattah el-Sisi’s government.
On January 14, 2023, the SCC handed down its ruling considering that Law 32 is constitutional, which means that third parties have no legal standing to challenge contracts between the Egyptian government and investors. A copy of the judgment will be made available in due course.
Centamin is an established gold producer, with premium listings on the London Stock Exchange and the Toronto Stock Exchange. The Company’s principal asset is the Sukari Gold Mine (“Sukari”), the first and largest modern gold mine in Egypt, as well as one of the largest producing mines in the world. Since production began in 2009, Sukari has produced over 5 million ounces of gold and today has a projected mine life of 14 years.
Through its large portfolio of exploration assets in Egypt and West Africa, Centamin is advancing an active portfolio of future growth prospects, including the Doropo project in Côte d’Ivoire, and more than 3,000 km2 of highly prospective exploration ground in Egypt’s Arabian Nubian Shield.
Centamin practices responsible mining activities, recognizing its responsibility to deliver operational and financial performance and to create lasting mutual benefit for all stakeholders through good corporate citizenship.
FOR MORE INFORMATION visit the website www.centamin.com or contact:
This announcement (including information incorporated by reference) contains “forward-looking statements” and “forward-looking information” under applicable securities laws (collectively, “forward-looking statements”), including statements with respect to future financial or operating performance. Such statements include “forward-looking financial information” or “financial outlook” with respect to prospective financial performance, financial position, EBITDA, cash flows, and other financial metrics that are based on assumptions about future economic conditions and current of action. In general, these forward-looking statements can be identified through the use of forward-looking terminology such as “believes”, “expects”, “expects”, “budgets”, “foresees” and “anticipates” and include production prospects, operating schedules, profiles production, expansion and expansion plans, efficiency gains, cost and production guidance, outlook for capital expenditures, exploration expenditures and other mining plans Although Centamin believes that the expectations reflected in such forward-looking statements are reasonable, Centamin cannot give any assurance that such expectations will prove to be correct.Forward-looking statements are forward-looking in nature and are not based on historical facts, but rather on Centamin management’s current expectations and projections of future events and, therefore, are subject to change. Known and unknown risks and uncertainties that could cause actual results to differ materially from results. future statements expressed or implied in forward-looking statements. In addition, there are a number of factors that could cause actual results, performance, achievements or developments to differ materially from those expressed or implied by such forward-looking statements; the risks and uncertainties associated with the ongoing impacts of COVID-19 or other pandemic, general business, economic, competitive, political and social uncertainties; the results of exploration activities and feasibility studies; assumptions in economic evaluations that turn out to be inaccurate; currency fluctuations; changes in project parameters; future prices of gold and other metals; possible variations in ore grade or recovery rates; accidents, labor disputes and other risks in the mining industry; weather conditions; political instability; regulatory decisions and changes enacted by government authorities; delays in obtaining approvals or financing or in completing development or construction activities; and discovery of archaeological ruins. The financial outlook and forward-looking financial information contained in this press release are based on assumptions about future events, including economic conditions and proposed courses of action, based on management’s evaluation of currently available relevant information. Readers are cautioned that any financial outlook or forward-looking financial information contained or referenced in this document may not be appropriate and should not be used for purposes other than those disclosed in this document. The Company and its management believe that the prospective financial information has been prepared on a reasonable basis, reflecting management’s best estimates and judgments as of the date hereof, and represents, to the best of management’s knowledge, the course of action expected from the Company. However, because this information is highly subjective, it should not be relied upon as necessarily indicative of future results. There can be no guarantee that forward-looking statements are accurate, as actual results and future events could differ materially from those anticipated in such information or statements, particularly in light of the current economic climate and significant volatility, uncertainty and disruption. caused by the outbreak of COVID-19. The forward-looking statements contained herein are made as of the date of this announcement and the Company disclaims any obligation to update any forward-looking statement, whether as a result of new information, future events or results or otherwise. Accordingly, readers should not place undue reliance on forward-looking statements.
Company number: 109180
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FONT: Centamin PLC
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