Egypt signs $658mln construction deal for phosphoric acid project
This marks a major step in Egypt's push to shift from raw mineral exports to high-value industrial processing, the Petroleum and Mineral Resources Ministry said.
The project is located at Abu Tartur Plateau in the New Valley Governorate and will use domestically sourced phosphate ore to produce 250,000 tonnes per year of high-grade phosphoric acid in its first phase.
'This is a historic move that will enable us to shift from exporting raw materials to launching an integrated industrial value chain,' Petroleum and Mineral Resources Minister Karim Badawy said
'It symbolises the third pillar of our strategy which outlines maximising returns from mineral wealth,' he added.
The deal was signed with a Chinese consortium that comprises of China State Construction Engineering Corporation (CSCEC) and East China Engineering Science and Technology Co. (ECEC).
According to Valley Governor Mohammed El-Zamlout, the project is a 'turning point' for the New Valley which is Egypt's largest governorate by area but has been overlooked in terms of industrial development.
'This project will be a key aspect in transforming the region into a strategic hub for mining-based industries,' he said.
(Writing by Nadim Kawach; Editing by Anoop Menon)
(anoop.menon@lseg.com)
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