Work will soon begin on building a USD 658 mn phosphoric acid production complex in the New Valley governorate, under an agreement inked between a consortium of local state-owned players and two Chinese state-owned contracting firms to act as the general contractors for the project. The Egyptian consortium included Abu Tartour for Phosphoric Acid, Abu Qir Fertilizers, East Gas, Mineral Resources Authority, Phosphate Misr, Petrojet, and Enppi, while the Chinese consortium consisted of China State Construction Engineering Corporation (CSCEC) and East China Engineering Science and Technology Company (ECEC).

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Phosphoric acid? Although it has numerous uses — including changing the taste of carbonated soft drinks, preserving foods, treating rust, adjusting pH levels for cosmetics, and more — by quantity and especially in Egypt, phosphoric acid is mostly used in the manufacture of fertilizers. The vast majority — if not all — of the phosphoric acid produced by the plant will presumably end up being consumed by the fertilizer industry, considering who’s involved in the project. Production will be directed “to high-yield industries instead of exporting it as raw material,” according to the statement.

The project will produce 250k tons of high-concentration commercial phosphoric acid a year in its first phase, utilizing phosphate from the Abou Tartour Plateau. It is “considered one of Egypt’s largest industrial ventures” aimed at maximizing the mineral resources revenues, particularly phosphate.

It looks likely that this is a scaled-down version of a project we heard about previously, as the same local players were reportedly working to set up a USD 1.2 bn phosphoric acid production plant, according to unconfirmed reports out last year. In addition to the larger price tag, the project also had a larger production capacity, with a 900k tons annual production target.

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