Is the price of copper in the south worth 4 billion dinars?

Al Anbat - Private

Translated by - Sara Shqair

Al-Anbat has learned from informed sources that the government, by the end of this year, and for another six months, is in the process of agreeing to extend the memorandum of understanding (MOU) on copper mining in one of the southern governorates.

Al-Anbat found from its reliable sources that official studies of the Natural Resources Authority indicated that there are about 25 million tons of copper ore in that area, with a concentration of about 2.3%, and according to studies, that means there are about 400,000 tons of pure copper.

 The price of 400,000 tons of net copper, is estimated at $10 domestically and globally, and copper in that region will be about $4 billion.

 It is worth noting that the difference between (MOU) and the agreement is that in MOU the government does not commit to any expenditure for studies and exploration, and it is not mandated to commit itself to any company, while the agreement is binding on any company to prepare a study called "banking study", which is a study that takes place after ensuring that there is copper ore in feasible economic quantities, and it includes a financial, social and environmental study of the location and road infrastructure, not to mention job creation in the same project.

 Also, the government is not obliged to pay the amounts paid by any company for preliminary studies in any way, and a monopoly loss remains on the company if the company is not approved to complete exploration later, as the cost of the study varies between 1-3 million dinars, while the "bank study" costs at least 20 million dinars.