CAIRO, Oct 30, 2012 (AFP)
CAIRO, Oct 30, 2012 (AFP)
An Egyptian court on Tuesday cancelled a gold mine concession for exploration company Centamin, causing its share price to
plummet and fuelling investor concerns in the politically turbulent country.
Cairo’s administrative court annulled the government contract, signed under ousted former strongman Hosni Mubarak, which allowed London and Toronto-listed Centamin to exploit the Sukkari gold mine for 30 years.
The cancellation came after a complaint by a former parliamentarian that the deal had short-changed Egyptians.
Following the decision, Centamin’s shares plunged by around 35 percent on the London Stock Exchange before trading was suspended.
In July, Centamin denied reports its Sukkari deal could be annulled because it had violated the contract, The Daily Telegraph reported.
Tuesday’s decision may be appealed.
Centamin began production in Sukkari, its main asset and the largest gold mine in Egypt, in 2009. Its contract is the latest Mubarak-era agreement that has come under judicial review.
