Egypt has signed final contracts on Sunday that will pave way the commencement of construction works on the $658 million Abu Tartur Phosphoric Acid Complex Project in the Western Desert. This marks a major step in Egypt’s push to shift from raw mineral exports to high-value industrial processing. This was revealed by a statement from the petroleum ministry.
Also, just to note, the deal of the production complex was signed in the presence of Petroleum and Mineral Resources Minister Karim Badawy and New Valley Governor Mohamed El-Zamlout at the ministry’s headquarters in the New Administrative Capital.
Abu Tartur Phosphoric Acid Complex Project Factsheet
Location: Abu Tartur Plateau, New Valley Governorate, Western Desert, Egypt.
Investment/cost:
- Initial investment: Approximately $658 million as of June 2025 contract signing.
- Total anticipated investment: approximately $1-1.2 billion is expected to fund for the entire project.
Capacity:
- First phase: this phase will have a capacity of 250,000 tons per year of high-grade phosphoric acid.
- Target capacity for the full project: Up to 500,000 tons per year will be produced.
Location
The phosphoric acid production complex project is located at Abu Tartur Plateau in the New Valley Governorate. This upcoming project will use domestically sourced phosphate ore to produce 250,000 tons per year of high-grade phosphoric acid in its first phase. Furthermore, the project is unique as it is Egypt’s largest industrial investments in the mining sector.
“This is a historic move that will enable us to shift from exporting raw materials to launching an integrated industrial value chain,” Minister Badawy stated. “It symbolizes the third pillar of our strategy which outlines maximising returns from mineral wealth.”
Developers of the Project
The construction of this project will be led by a Chinese consortium that comprises of China State Construction Engineering Corporation (CSCEC) and East China Engineering Science and Technology Co., Ltd. (ECEC). This consortium will be partnering with Income Egypt.
Furthermore, the project is being developed under the umbrella of the Abu Tartur Phosphoric Acid Company. Also, it is being supported by several Egyptian state-owned firms inclusive of Phosphate Misr, Abu Qir Fertilizers, and Petrojet.
Additionally, agreements that were signed included a shareholders’ framework and an EPC (engineering, procurement, and construction) contract with the Chinese alliance.
Significance of the Abu Tartur Phosphoric Acid Complex Project Project
According to Governor El-Zamlout, the project is a “turning point” for the New Valley which is Egypt’s largest governorate by area but overlooked in terms of industrial development.
“This project will be a key aspect in transforming the region into a strategic hub for mining-based industries,” he stated. Also, he noted that it would generate hundreds of jobs. Additionally, it would attract further investment to the Western Desert.
Furthermore, the project is in line with Egypt’s broader strategy to localise key industries, increase the contribution of the mining sector to GDP, and generally cut the country’s reliance on raw material exports.
Mohamed Abdel Azim, Chairman of Phosphate Misr hailed that the facility would serve as a launchpad for future downstream industries based on the vast phosphate reserves that the country possesses.
“Lastly, we view this project not as an endpoint. Also, it will be a foundation for a series of value-added industrial projects. Such projects are expected to turn Egypt into a key player in the global phosphate supply chain,” he mentioned.
Also read: $1.65 Billion Egypt’s Xinfeng Integrated Metallurgical Complex Agreement Signed
