Three union committees at El-Nasr Mining Company have warned against halting the firm’s operations because of a three-year-old refusal by the Egyptian Geological Survey and Mining Authority to grant the company licenses for phosphate mining in Aswan Governorate.
In a memo to the Minister of Investment and the chairman of the Egyptian Trade Union Federation, the trade unions said that El-Nasr submitted 34 licensing requests, all of which were rejected.
The unions also said that the Mining Authority granted 16 licenses to a new company, Phosphate Misr, in addition to seven other licenses for public and private firms as recently as a few months ago.
The memo said that the Mining Authority’s stance endangers the future of 2000 workers and their families who work as sub-contractors in shipping the ore to seaports.
Zaki Bassiouni, the head of Egypt’s Holding Company for Metallurgical Industries, said that the decision to suspend licenses of the biggest governmental mining firm will hinder current investments worth LE1.5 billion, and could cost more than LE300 million over the next three years.
Bassiouni argued that the Mining Authority’s stance is at odds with Law 86/1956, which regulates quarries and mines and gives licencing priority based order of submission. El-Nasr applied for the licenses in 2007.
An official at the authority, who requested anonymity, said that a compromise is being reached with the company.
The problem is not with El-Nasr Company, the official said, but simply that there are too many applications. He said that the board of directors will give priority to applicants with adequate financial resources and technical experience.
The source added that Phosphate Misr is also governmental and was established to settle outstanding government debts of LE3.8 billion.
Translated from the Arabic Edition.
