Egypt finalized agreements needed to start the construction of the phosphoric acid production complex at Abu Tartour in the New Valley. The project aims at maximizing the added value and increasing the economic return of Egyptian phosphate ore by using it in high-yield industries rather than exporting it as raw material.

The Minister of Petroleum and Mineral Resources, Karim Badawi and New Valley Governor, Mohamed Al-Zamlout witnessed on Sunday the signing of a framework agreement between a consortium of Egyptian public entities, as well as a general contractor agreement with a Chinese consortium to build the industrial complex.

The Egyptian state-owned entities include Abu Qir Fertilizers; East Gas Company, Mineral Resources and Mining Industries Authority; Misr Phosphate, AT-PHOS, Petroleum Projects and Technical Consultations Company (PETROJET), and Engineering for the Petroleum and Process Industries (ENPPI), all of which are shareholders in the project.

The contractor agreement was signed with a Chinese consortium of China State Construction Engineering Corporation (CSCEC) and East China Engineering Science and Technology Co (ECEC).

The complex, with total investments of $658 million, will produce 250,000 tons per year (tpa) of high-grade commercial phosphoric acid (100% P₂O₅) in the first phase. It will leverage phosphate ore from Abu Tartour mines utilizing cutting-edge technologies.

Minister Badawi said that the commencement of the project’s implementation represents a milestone towards shifting from raw material production to the establishment of integrated mining industries that achieve high added value, in addition to tapping new horizons for Egypt in the field of mining industries built on its mineral wealth.

While Governor El-Zamlout highlighted the project’s significance for the New Valley, noting that establishing such an industrial complex is a true embodiment of the country’s strategy to develop and populate the desert hinterlands, particularly the New Valley, which has long remained outside the scope of heavy industrial development.

Recently, Minister Badawi held a meeting with AT-PHOS to review the execution plan of the project, according to which, the first phase is expected to begin early in 2026  and to be commercially operational by 2028.