Egypt has broken ground on a $658 million phosphoric acid complex at the Abu Tartour mining plateau in the Western Desert, as the country moves to process more of its phosphate resources locally and capture greater value from its mineral wealth.

The project, launched on August 19, 2026, is being developed by the state-owned companies including Phosphate Misr, Abu Qir Fertilizers and Chemical Industries Company and Helwan Fertilizers Company, alongside local financial institutions Al Ahly Capital Holding and the National Investment Bank.

Phosphate processing capacity to reach 250,000 tons

Engineering and construction contracts have been awarded to Chinese companies China State Construction Engineering Corporation and East China Engineering Science and Technology Co., with construction expected to take approximately 30 months.

The first phase of the complex will have annual production capacity of 250,000 tons of high-concentration commercial phosphoric acid, a key raw material used in the production of phosphate fertilizers.

Most of the plant’s output is expected to be exported through the Red Sea port of Safaga, positioning the project as a potential source of additional foreign-currency earnings.

The complex is also expected to create more than 3,000 direct and indirect jobs, while strengthening domestic industrial activity around the country’s phosphate mining sector.

Egypt targets higher value from phosphate reserves

Egyptian Minister of Petroleum and Mineral Resources Karim Badawi described the facility as one of the country’s major industrial projects aimed at increasing the economic value generated from its phosphate resources.

The project forms part of the government’s broader strategy to move beyond the export and direct use of raw minerals toward downstream processing and the production of higher-value industrial goods.

The strategy is intended to strengthen exports, generate foreign currency and deepen Egypt’s domestic manufacturing capabilities.

Foreign investors join Egypt’s phosphate expansion

The Abu Tartour project comes as Egypt attracts additional investment into phosphate processing and fertilizer production.

In April, Indonesian conglomerate Indorama Corporation partnered with Phosphate Misr to establish an integrated industrial complex focused on producing phosphate fertilizers and chemicals.

Chinese chemical producer Kunming Chuan Jin Nuo Chemical also signed an agreement in November 2025 with Egyptian company El Sewedy Industrial Development to build a $1 billion chemical plant producing phosphoric acid, diammonium phosphate and triple superphosphate.

The projects reflect growing efforts to develop Egypt’s phosphate reserves into higher-value fertilizer and chemical products rather than relying primarily on the export of raw materials.

Egypt holds major phosphate reserves

Egypt has an estimated 2.8 billion tons of phosphate reserves, ranking it among the world’s largest holders of the resource, according to the U.S. Geological Survey. The country produced approximately 16 million tons of phosphate between July 2024 and April 2025, according to Egypt’s Ministry of Petroleum and Mineral Resources.

With the Abu Tartour complex and other planned processing facilities, it seeks to build a more integrated phosphate industry spanning mining, chemical processing, fertilizer production and exports.

The success of these projects could strengthen Egypt’s position in global phosphate markets while increasing the amount of value and foreign-currency revenue generated from its domestic mineral resources.