The Minister of Petroleum and Mineral Resources, Engineer Karim Badawy, announced a comprehensive strategy aimed at maximizing the added value of Egyptian phosphate ore. This strategy includes expanding the establishment of mining industries in partnership with local private sector and international partners, in coordination with the Ministry of Industry, contributing to supporting the national economy and increasing returns from natural resources.
During the general assembly of Egypt Phosphate Company, the minister explained that transforming the Mineral Resources Authority into an economic authority under the name "Mineral Resources and Mining Industries Authority" represents an important turning point in attracting investments and providing an encouraging environment for establishing new mining and industrial projects.
Details of the Initiative
Badawy pointed out that the projects of the phosphoric acid complex in New Valley and the phosphate fertilizer complex in Ain Sokhna, in partnership with Indorama International, are clear examples of this direction. This came after the recent signing of the fertilizer complex construction contract in the presence of Prime Minister Dr. Mostafa Madbouly.
He added that the phosphoric acid project faced challenges in the past period; however, cooperation among stakeholders helped overcome obstacles and return the project to actual implementation after a period of suspension.
Background & Context
The minister emphasized halting the signing of any new contracts for exporting phosphate ore, prioritizing local manufacturing to maximize added value while fully adhering to existing export contracts. This step comes at a time when the Egyptian government is striving to enhance its production capabilities and achieve self-sufficiency in various fields.
In the context of developing human resources, Badawy confirmed the importance of investing in training and qualifying workers in the mining sector, praising the training capabilities available at Egypt Phosphate Company, and directing to maximize their benefits, alongside accelerating the establishment of a mining school in New Valley similar to applied technology schools.
Impact & Consequences
Engineer Mohamed Abdel Azim, the former head of the company, reviewed performance indicators, clarifying that "Egypt Phosphate" holds about 40% of phosphate production and sales in the local market, with a total production of 4.02 million tons, achieving continuous growth for the fifth consecutive year. This growth reflects the company's ability to adapt to economic challenges and achieve its strategic goals.
He noted the expansion of exploration activities, especially in the West Mohab area in New Valley, in preparation for starting production during the second half of this year, while continuing drilling operations to confirm new reserves in the West Mohab and Qlou' Al-Sabaya areas.
Regional Significance
Regarding value-added projects, he clarified that the phosphoric acid production project with a capacity of 450,000 tons annually has entered the actual implementation phase since the beginning of this year, with construction works starting on site. Work is also underway to establish a phosphate fertilizer production complex in Ain Sokhna with a capacity of 600,000 tons annually, in cooperation with Indorama International, using the latest technologies, supporting the state's direction towards manufacturing and maximizing the benefits from mining raw materials.
These steps are part of a broader vision aimed at enhancing the competitiveness of the Egyptian economy in the regional and international markets, contributing to achieving sustainable development.