Minister of Petroleum and Mineral Resources and New Valley Governor Witness the Signing of Final Contracts to Launch the Phosphoric Acid Production Complex in New Valley
In implementation of the objectives of the third pillar of the Ministry of Petroleum and Mineral Resources’ strategy to maximize the economic return from mineral resources, Eng. Karim Badawi, Minister of Petroleum and Mineral Resources, and Major General Dr. Mohamed El-Zamlout, Governor of New Valley, witnessed the signing of the final agreements and contracts to commence the implementation of the industrial complex for phosphoric acid production at Abu Tartour Plateau.
The signing ceremony took place at the Ministry’s headquarters in the New Administrative Capital, where the Minister and the Governor witnessed the signing of the framework agreement among the project shareholders, as well as the general contractor agreement with the Chinese consortium CSCEC / ECEC to execute the industrial complex. The project represents a qualitative leap aimed at maximizing added value and increasing the economic return of Egyptian phosphate ore by directing it to high-value industries instead of exporting it as raw material.
The shareholders’ framework agreement was signed by:
- Hany Dahy, Chairman of Abu Qir Fertilizers Company
- Mohamed Shoaib, Chairman of East Gas Company
- Geologist Yasser Ramadan, Chairman of the Egyptian Mineral Resources Authority
- Mohamed Abdel Azim, Chairman of Phosphate Misr Company and Abu Tartour Phosphoric Acid Company
- Walid Lotfy, Chairman of Petrojet
- Wael Lotfy, Chairman of ENPPI
The general contractor agreement to start project execution was signed by Eng. Mohamed Abdel Azim, Chairman of Phosphate Misr and Abu Tartour Phosphoric Acid Company, and Eng. Medhat Yousry, Managing Director of Abu Tartour Phosphoric Acid Company, with Mr. Zhang Wei Zhai, Head of CSCEC in Egypt, and Mr. Zihao Shaobing, representing ECEC, in the presence of the project shareholders.
The signing was also attended by Eng. Moataz Atef, Deputy Minister for the Minister’s Office, Technical Office and Official Spokesperson; Dr. Mohamed El-Bagouri, Supervisor of the Central Legal Affairs Department at the Ministry; Eng. Hisham Shetta, Chairman of INCOM; and Eng. Amr Shetta, Executive Partner of INCOM, the Egyptian partner of the Chinese consortium.
The project is considered one of the largest industrial projects aimed at maximizing added value from Egyptian mineral resources, particularly phosphate ore. The total investment cost amounts to USD 658 million. In its first phase, the complex targets the production of 250,000 tons per year of high-concentration commercial phosphoric acid (P₂O₅ 100%), using phosphate ore extracted from the Abu Tartour mines and applying the latest global technologies in design and operation, under the umbrella of Abu Tartour Phosphoric Acid Company.
Following the signing, Eng. Karim Badawi, Minister of Petroleum and Mineral Resources, emphasized the importance of this step in launching the actual implementation of the project, noting that it falls within the third pillar of the Ministry’s strategy and aims to achieve a qualitative transformation in the mining sector and increase its contribution to the national economy.
He added that commencing project execution represents a historic step toward transitioning from raw material production to integrated mining industries that generate high added value, and marks the beginning of new horizons for Egypt in mining-based industries leveraging its natural resources.
The Minister expressed his appreciation to all shareholders and work teams for their integrated efforts, which contributed to the rapid commencement of the project and adherence to the planned timelines, praising the collective will to overcome challenges and move decisively into the execution phase. He also highlighted the strong interest and continuous follow-up by the political leadership and the government for this project, which lays the foundation for advanced mining industries based on Egyptian raw materials.
Eng. Badawi further commended the Governor of New Valley for his ongoing support and cooperation, and directed swift coordination to enable the general contractor to begin work at the project site in New Valley.
For his part, Major General Dr. Mohamed El-Zamlout, Governor of New Valley, stressed the significance of the project for the governorate, noting that establishing such an industrial complex represents a true embodiment of the state’s strategy to develop and populate desert hinterlands—particularly New Valley, which for decades had remained outside the map of heavy industrial development.
He added that the project will contribute to creating hundreds of direct and indirect job opportunities for local residents and will enhance the region’s attractiveness for industrial investment, thereby achieving integrated urban and economic development. He affirmed the governorate’s full readiness to provide all necessary support for this promising national project.
