Arab Finance: Egypt’s Ministry of Petroleum and Mineral Resources and Abu Dhabi-based fertilizer producer Fertiglobe are probing plans for an integrated phosphate fertilizer complex in Ain Sokhna, with investments exceeding $1.5 billion, as per a statement.

The complex targets a production capacity of 1.3 million tons of diammonium phosphate (DAP) fertilizer annually, with commercial production to begin in 2031.

Minister of Petroleum and Mineral Resources Karim Badawi reviewed the preliminary proposal with Fertiglobe CEO Ahmed El-Hoshy and an accompanying delegation. 

El-Hoshy said the company is finalizing a feasibility study with consultants. Securing long-term supplies of phosphate ore is a key requirement for completing the assessment, alongside examining opportunities to integrate phosphoric acid production with finished fertilizer manufacturing, drawing on available ammonia and Egypt’s existing industrial infrastructure.

To advance that work, Badawi directed coordination between Fertiglobe, the Mineral Resources and Mining Industries Authority (MRMIA), and other participants in Egypt’s mining sector to identify phosphate deposits that could supply the complex and assess the feasibility of long-term sourcing arrangements.

He also called for the completion of technical and economic studies covering the proposed technology, energy needs, and infrastructure required to establish the facility.

The two sides discussed accelerating the exchange of technical, geological, and commercial information and completing the preparations needed to examine phosphate ore supply agreements. This work would help determine the project’s economic viability and implementation requirements.

Badawi said the proposal supports Egypt’s efforts to generate greater economic value from its mineral resources by expanding domestic manufacturing. Linking mining with industrial production would allow raw materials to be processed into higher-value products, supporting output, exports, and investment in industries that add value to local resources.

Beyond fertilizers, the meeting examined a proposal to produce AdBlue locally using domestically available urea. The aqueous urea solution is used in vehicles equipped with selective catalytic reduction (SCR) systems to reduce nitrogen oxide emissions and improve air quality.

The proposal also considers opportunities to expand the solution’s applications. Badawi requested a detailed technical and economic assessment, including production requirements and target uses, to establish its feasibility and determine the next steps.