Egypt has begun construction of a $658m phosphoric acid complex in the New Valley Governorate, aiming to process local phosphate ore for export and generate foreign currency. The project marks a shift toward higher-value mineral processing.
Egyptian authorities have officially launched construction of a $658 million industrial complex to produce phosphoric acid from phosphate ore at the Abu Tartour plateau in the New Valley Governorate. The facility is designed to process 250,000 tonnes annually of highly concentrated commercial phosphoric acid, a key input for fertiliser production, with exports planned via the Red Sea port of Safaga.
The project, executed by Chinese contractors CSCEC and ECEC, is scheduled for completion within 30 months. According to the Ministry of Petroleum and Mineral Resources, it is expected to create more than 3,000 direct and indirect jobs and contribute to Egypt's foreign currency earnings through mineral exports.
Strategic shift in Egypt's mining sector
Minister of Petroleum and Mineral Resources Karim Badawi described the complex as a strategic move from raw material extraction to value-added mineral processing. He noted that the project had faced years of delays before reaching the implementation stage. Badawi also highlighted recent reforms, including the transformation of the Mineral Resources and Mining Industries Authority into an economic authority with a cross-government board, aimed at streamlining procedures, reducing investment risk, and fostering a more competitive mining environment.
Regional impact and future mining plans
New Valley Governor Hanan Magdy stated that the phosphoric acid project strengthens the region's role as a hub for mining-based industries. She indicated that the governorate and the petroleum ministry are developing a five-year vision for the region's mining sector. During the site visit, Egyptian private sector companies presented proposals for additional integrated facilities, including a complex for phosphate extraction, fertiliser production, and rare earth element exploitation in Abu Tartour, as well as an exploration and processing complex in the Dakhla area.
The delegation also inspected Crusher No. 8, operated by Misr Phosphate Company, which holds a 25 percent stake in the new project. Misr Phosphate Chairperson Nasser Shaheen said the company is Egypt's largest phosphate producer, with an annual capacity of 7 million tonnes from sites in Abu Tartour, Sibaiya, and the Red Sea. He added that Misr Phosphate is developing a separate 600,000-tonne-per-year phosphate fertiliser complex in Ain Sokhna in partnership with Indorama.
