Chinese mining and fertiliser firm to invest US$10bn in Egypt

Photo credit: Industry Tap

Shanghai-based mining-to-fertiliser firm Asia-Potash is setting up a massive extractive industrial complex near Luxor in Egypt to mine phosphate and produce fertiliser – mostly for exports.

The first phase of the project, expected to create 3,000 direct jobs, involves a US$1.6bn investment to extract 2m tonnes of phosphate annually and convert it into phosphate fertiliser. Total investment across all phases is projected to range between US$7bn and US$10bn, culminating in a production capacity of 10m tonnes of phosphate.

Egypt produces around 4.8m tonnes of phosphate. It is estimated to have up to 2.8bn tonnes of rock phosphate reserves under its soil. Phosphate rock, extracted from open-pit and underground mines, is the primary raw material for phosphate fertilisers. It contains phosphorus, an essential nutrient for plant growth that supports robust root systems, improves resilience, and enhances fruit and seed production.

Demand for phosphate fertilisers has created a US$54.6 billion global market – a figure is expected to reach US$78.4bn by 2030.

Asia-Potash’s mining operations and industrial complex will be located in southeastern Egypt, near Luxor. Exports will be routed through Safaga Port on the Red Sea. The first phase is expected to be completed within 18 months of construction commencing. The company also intends to collaborate with Egypt’s emerging green ammonia projects to ensure sustainable energy supplies.

Cairo has introduced a range of investment incentives to attract foreign investors, including tax breaks, subsidies, and the 'Golden Licence’, which streamlines regulatory approvals into a single-step process. Asia-Potash will be eligible for some of these incentives as part of its planned investment in the country.

State-owned Misr Phosphate operates the Abu Tartour, the Sibaiya and the Red Sea mines - all of which yield high grade phosphate. In 2023, Egypt exported US$2.5bn worth of fertilisers, with Türkiye, Italy, and France as major markets. The country’s strategic location enables easy access to global markets, including Asia, Europe, and the Americas, positioning it as a competitive hub for phosphate fertiliser exports.

Singapore-based Indorama Corporation, a chemicals and fertiliser manufacturer, is also plans to establish a phosphate fertiliser factory in the country. In 2023, it signed a memorandum of understanding with The Sovereign Fund of Egypt to evaluate potential investments.

References

‘Fertilizers rank second among Egypt's exports with dlrs 2.7 bn’, State Information Service, 21 February 2023

‘PM witnesses signing of MoU between SFE, Indorama Corporation’, State Information Service, 25 July 2023

‘Indorama aims to build $700mln factories in Egypt’, Zawya, 30 August 2023

‘Egypt seeks new investments for phosphate projects’, Zawya, 13 October 2023

‘The essential role of phosphorus fertilisers in agriculture’, Plant Needs, 05 November 2024

‘Egypt rises in global rankings with ninth largest phosphate reserves’, The Middle East Observer, 08 January 2025

‘Asia-Potash plans to establish a phosphate fertilizer industrial complex in Egypt with $1.6 billion in investments’, General Authority of Investment and Free Zones, 09 January 2025

‘China’s strategic investment in Egypt: A $10 billion boost to phosphate fertilizer industry’, The Middle East Observer, 20 January 2025

‘List of importing markets for a product exported by Egypt – Product: 31 Fertilisers’, International Trade Centre, Accessed 26 January 2025