Sawiris Warns of Armed Gold Miners Threatening Egypt’s Billion-Dollar Mining Prospects

Egypt’s underground wealth is no secret, but what’s happening above ground could scare off investors before the real treasure is even touched.

Business mogul Naguib Sawiris, one of the loudest voices in Egypt’s mining sector, is raising a red flag. He says armed groups are illegally digging up gold in zones earmarked for licensed exploration firms—and it’s starting to look like a full-blown crisis.

Unlicensed Miners Are Grabbing Gold—and Attention

Sawiris didn’t hold back in his latest interview with CNN Business Arabic.

He described how gangs, some reportedly armed, are carrying out unauthorized gold mining activities across various promising sites in Egypt. These areas had been designated for legitimate firms like his own to conduct licensed exploration. Instead, they’ve turned into wild frontiers.

“This is theft. Plain and simple,” he said bluntly.

The issue, he explained, isn’t just about losing gold. These unauthorized groups pay no taxes, follow no safety regulations, and ignore all environmental safeguards. It’s hurting everyone—investors, the government, and, ironically, the communities who could benefit the most.

Exploration Success Meets Growing Frustration

Licensed mining operations are already showing big promise. Initial test results, according to Sawiris, reveal “very promising” gold reserves—numbers that should’ve sparked a wave of new investments.

But instead of a gold rush, what Egypt is seeing now is investor hesitation. And that’s coming at a bad time.

Sawiris had announced fresh capital injections into Egypt’s mining industry through La Mancha Holding. His company, which already has stakes in mining giants across Africa and beyond, had been ramping up its local ambitions. But now? The mood has shifted.

“We are confident in Egypt’s potential,” he said, “but without real enforcement, there’s too much risk.”

Investors Want Gold—Not Gunfights

This is not about corporate competition. It’s about lawlessness.

Licensed companies are paying fees, hiring workers, complying with laws, and still watching gold-rich zones get pillaged in broad daylight. Sawiris made it clear: you can’t build an investment climate where exploration teams need security details.

And here’s the kicker—these gangs aren’t just small-time opportunists. Some are well-organized, armed, and operate across vast stretches of Upper Egypt and the Eastern Desert.

• The Ministry of Petroleum and Mineral Resources had announced plans last year to attract $1 billion in mining investments by 2026.

But if this trend continues, that figure could look like wishful thinking.

Egypt’s Gold: An Untapped Fortune With High Stakes

Egypt is sitting on one of the most underexplored gold belts in the region. According to industry data, there’s a high concentration of deposits in the Eastern Desert and near the Sudanese border.

Here’s a snapshot of how Egypt compares to other gold-rich countries in the region:

Egypt’s numbers might look modest now, but Sawiris believes the upside is enormous—if the government can stamp out illegal players and tighten enforcement.

Sawiris’s Push: Clean House, Reap Rewards

The Egyptian government has made efforts in recent years to update its mining laws. There were adjustments in contract terms, royalty structures, and auction processes aimed at making the country more investor-friendly.

But Sawiris suggests enforcement hasn’t kept pace with regulation.

“You can’t lure billion-dollar firms if they’re competing with guys with AK-47s,” he said with a mix of frustration and disbelief.

Still, he’s not pulling out—not yet.

He insists Egypt could become a major gold player in the Middle East, but it needs to act quickly. Get illegal operations off the map. Secure licensed zones. Build investor trust.

And maybe—just maybe—Egypt can finally turn its underground riches into an above-ground success story.