Egypt seeks to boost phosphate processing

Egypt is working to increase its local processing of phosphate, a key ingredient in fertilizers, to capture more value from its large reserves rather than exporting raw ore. The country aims to attract investments in phosphoric acid and fertilizer production, aiming to develop a more integrated industry.

New project with Fertiglobe under discussion

Egypt and Fertiglobe, a company owned by the UAE's ADNOC and active in urea and ammonia production, are exploring a major phosphate fertilizer project in Ain Sokhna. The proposed complex would require an investment of more than $1.5 billion and could produce 1.3 million tonnes of diammonium phosphate (DAP) annually, with operations expected to start by 2031.

Feasibility studies and supply needs

Fertiglobe is currently finalizing feasibility studies with consultants, focusing on the technological processes, energy needs, and infrastructure required for the project. A key requirement is securing a long-term supply of phosphate ore, which Egypt’s minister has asked his team to help identify.

Existing facilities and future expansion

Fertiglobe already operates two major facilities in Egypt’s Suez Industrial Development Company park. These include the Egyptian Fertilizer Company (EFC), which produces urea and ammonia, and Egypt Basic Industries Corporation (EBIC), which also produces ammonia. The new DAP project would expand their operations to include phosphate-based fertilizers.

Egypt’s phosphate reserves and exports

Egypt holds the third-largest phosphate reserves globally, behind Morocco and China, and produced about 5.3 million tonnes of phosphate rock in 2024. However, most of this is exported, with 35% going to India, 26% to Indonesia, and 14% to China. The government aims to change this by processing more of the resource domestically.

Growing private investment in phosphate industry

Several private projects are already underway to develop phosphate processing in Egypt. In Abou Tartour, a phosphoric acid complex is under construction with a $658 million investment. In Ain Sokhna, Indorama has signed a $525 million contract for a phosphate fertilizer complex. These projects highlight the growing interest in Egypt’s phosphate sector.