Egypt breaks ground on $658 million Abu Tartour phosphoric acid complex
Egypt broke ground on a $658 million phosphoric acid complex in the Abu Tartour phosphate region on Wednesday, as the government seeks to process more mineral resources domestically and boost exports of higher-value products.
Petroleum and Mineral Resources Minister Karim Badawy and New Valley Governor Hanan Magdy laid the foundation stone for what the ministry described as Egypt’s first industrial complex to produce phosphoric acid from local phosphate ore, the ministry said in a statement.
The project will initially produce 250,000 tons of concentrated commercial-grade phosphoric acid a year, a key input for fertiliser production, and is expected to create more than 3,000 direct and indirect jobs.
China State Construction Engineering Corporation (CSCEC) and East China Engineering Science and Technology Co. (ECEC) are building the complex using advanced technology, with construction expected to take 30 months, the ministry said.
Production will be exported through Safaga Port, generating foreign currency revenues, it added.
Badawy said the Abu Tartour project was part of Egypt’s strategy to move beyond exporting raw minerals and develop processing industries that generate greater economic value and support exports.
“The Abu Tartour project is a model for maximising the added value of Egypt’s mineral resources,” Badawy said.
The project had faced obstacles that delayed implementation for years, but the ministry had resolved the challenges over the past year and moved it into the execution phase through coordination with the Mineral Resources and Mining Industries Authority (MRMIA) and project shareholders, he said.
The complex is located in New Valley, which the government sees as having potential for mining-based industries because of its mineral resources.
The ministry is working with the governorate on a five-year roadmap for mining and related industries in the area, the minister said.
Badawy also said the government’s decision to transform the MRMIA into an economic authority marked a major change for Egypt’s mining sector and could open new investment opportunities.
The move would create a more flexible and efficient system, with representatives of relevant government bodies on the authority’s board, helping streamline procedures, support investors, and reduce investment risks, he said.
The minister thanked the parliament for supporting the legislation needed for the transformation, saying the move would signal to investors that Egypt’s institutions were working together to create a more competitive investment environment.
New Valley Governor Hanan Magdy said the project would strengthen Abu Tartour’s position as a hub for mineral-based industries and help transform phosphate ore into higher-value industrial products.
The governorate would provide support and coordination for mining and industrial projects, she said, with the aim of maximising their economic and developmental impact on local communities.