As global demand for fertilizers continues to surge, Egypt has begun to show greater interest in leveraging its abundant phosphate resources to boost exports and strengthen its economy.

Ranked third globally in phosphate reserves—after Morocco and China—Egypt holds an estimated 2.8 billion tons, positioning it as a key player in the international fertilizer market.

Thus, Egypt has increased its phosphate ore production to approximately 16 million tons from July 2024 to April 2025, compared to 11 million tons during the fiscal year 2023/2024, according to data from the Ministry of Petroleum and Mineral Resources.

Phosphate deposits in Egypt are present in large quantities in the New Valley at Abu Tartour, the Nile valley between Edfu and Qena (Sebaiya East and West), and the Red Sea areas (Safaga, El-Hamrawein, and El Quseir).

Egypt ranks fourth or fifth in exporting phosphate rock. It is seeking to increase its exports to six million metric tons (MT), up from 5.2 million tons last year.

On the other hand, Phosphate rock, when used in an untreated form, is not very soluble and provides little available phosphorus to plants, except in some moist acidic soils. Treating phosphate rock with sulfuric acid produces phosphoric acid, the basic material for the manufacture of most phosphatic fertilizers.

These fertilizers include diammonium phosphate (DAP) and monoammonium phosphate (MAP), produced by reacting phosphoric acid with ammonia, as well as triple superphosphate, which is made by treating phosphate rock with phosphoric acid.

Recognizing this potential, Egypt is intensifying its efforts to revolutionize its industrial mining sector by converting phosphate into fertilizers and finished products, rather than continuing to export it as a raw material in agreement with the Ministry’s goal of increasing the contribution of the Mining sector to the Gross Domestic Product (GDP) from less than 1 to 6%.

“The petroleum and mining sectors attach utmost importance to value-added projects and capitalizing on Egypt’s oil and mineral wealth. This is being pursued through the expansion of local manufacturing projects and the development of world-class products for export, thereby generating foreign currency for Egypt,” said Karim Badawi, Minister of Petroleum and Mineral Resources, during a general assembly meeting with Misr Phosphate company.

First Step to Transform Mining Sector in Egypt

The government is transforming the mining sector, aiming to position the country as a regional hub for mining industries. To fulfill this goal, the Egyptian Parliament’s Industry Committee approved a draft law in February seeking to transform the Egyptian Mineral Resources Authority (EMRA) from a service authority into an economic authority with the aim of reforming the mining sector.

Therefore, the transformation would allow the new entity, now called Egyptian Mineral Resources and Mining Industries Authority, to better manage its resources and adopt a more flexible approach to meeting Egypt’s growing demand for industrial mineral raw materials.

Hopefully, this transformation of the Authority into an economic entity would help increase the revenues of the mining sector from EGP 2 billion to EGP 12 billion annually, expand exports from $1.5 billion to $7 billion, and create around 200,000 direct and indirect jobs.

Recognizing Phosphate Raw Material Potential

Phosphate, one of the most significant elements of Egypt’s mineral wealth, forms an essential component in agricultural fertilizers and phosphorus-based chemicals. About 95% of the phosphate produced worldwide is consumed in the fertilizer industry.

Phosphate ore is categorized by its phosphorus pentoxide (P₂O₅) content: Low-grade (12–16% P₂O₅), Intermediate-grade (17–25% P₂O₅), and High-grade (26–35% P₂O₅). Commercial-grade phosphate deposits, typically ranging from 28–38% P₂O₅, are considered economically viable for mining and processing.

The Abu Tartour mine in the New Valley region alone contains reserves of one billion tons of phosphate ore with grades up to 31% P₂O₅. Similarly, the El-Sebaiya mine is rich in high-grade phosphate ore (28–30% P₂O₅) and is considered the most economically significant mine in the Nile Valley region. It accounts for over 70% of the Nile Valley’s phosphate reserves, totaling approximately 500 million tons.

In June, Egypt finalized agreements needed to start the construction of the phosphoric acid production complex at Abu Tartour in the New Valley. The project, first announced in 2019, involves a two-phase development, each targeting an annual production capacity of 250,000 tons.

According to Abu Tartour for Phosphoric Acid Company (AT-PHOS), the first phase of the complex construction is estimated to cost $573 million, with construction set to begin early 2026 and commercial operations expected by 2028.

“This project stands out as a notable success story in the field of mineral-based manufacturing, producing high-quality output that meets global standards, enhances export opportunities, and supports the local market,” said Mohamed Abdel Azim, Chairman and Managing Director of Phosphate Misr Company in a panel discussion held on the sidelines of the Egypt Mining Forum recently held in Cairo.

He noted that the project has been structured with a phased implementation framework to address funding challenges and relies on self-financing to ensure efficiency and quality.

In this regard, Hanan Magdy, Deputy Governor of the New Valley, referred to the major infrastructure projects created in the governorate to serve the mining projects in general and the Abu Tartur project in particular, including the creation of some 3,000 kilometers of roads and solar power stations with a capacity of 4 gigawatts.

“The New Valley is the largest governorate in Egypt in terms of area and possesses a vast reserve of underground wells and mineral resources,” Magdy said during EMF session, noting that the phosphate plateau in Abu Tartur stretches for about 300 kilometers and contains high-quality phosphate, of which only 10% has been utilized so far — despite the commencement of phosphoric acid production and expectations that investments will exceed one billion Egyptian pounds.

Moreover, Egypt is currently advancing work for establishing a $500 million phosphate fertilizer factory in the Ain Sokhna economic zone in cooperation with the Indian company, Indorama.

Besides, the Chinese Asia-Potash company is investing $1.6 billion in the first phase of an industrial complex for phosphate fertilizer production. That includes exploration and extraction of two million tons per year (mtpa) of phosphate and conversion to fertilizers for export. The project will span an area from Esna, Luxor, to Sebaiya in Aswan.

In July, the Egyptian Mineral Resources and Mining Industries Authority signed a memorandum of understanding (MoU) with El Sewedy Capital to explore and exploit phosphate ore in the El Sebaiya mines (Nile Valley).