Egypt’s largest gold producer, Centamin PLC, announced on Monday that the Sukari gold mine, its largest asset, would resume normal operations in the upcoming days.
The Egyptian General Petroleum Corporation (EGPC) had suspended Centamin’s operations in Egypt and halted supply of diesel to its Sukrai gold mine, the only large-scale modern gold mine in Egypt, after it failed to pay almost LE403 million for fuel supply. For its part, the Australian gold producer had said the EGPC's claim was illegal and arbitrary.
EGPC announced shortly after that no retrospective payment is due on Centamin.
"The operation is not back to normal yet. We need to receive the payment from the gold recent export and then channel diesel supply to the Sukari mine before we can resume normal operations. We expect this to be by the end of the week," Andy Davidson, Head of Business Development and Investor Relations at Centamin, told Ahram Online.
The company was compelled to halt production in October and December of the year 2012, following disputes with the Egyptian government over diesel fuel supply and gold exports.
Following the recent suspension, its shares tumbled to a record-low rate, the lowest in "seven years" according to Centamin officials.