The CEO of the General Authority for Investment and Free Zones, Mohamed El-Gawsaky, met with a delegation from DrasChem Specialty Chemicals to discuss establishing a sodium cyanide production facility at the Sidi Kerir Petrochemicals Complex in Alexandria. Production is set to start in 2028 with an initial investment of $200 million, targeting exports to African markets. The project supports government priorities in boosting exports and technology transfer.
In a recent meeting, both sides reviewed progress, including the Cabinet's approval for the company to operate under the Private Free Zones framework, full compliance with Egyptian and international chemical safety standards, and the start of the project's design and construction phase. Discussions also addressed contracting with raw material suppliers.
DrasChem aims to begin production in 2028 after completing the first phase, with a capacity of 50,000 tonnes of sodium cyanide annually—a key input for gold extraction—primarily for export. The second phase will either double output or produce additional derivatives, while the third will focus on sodium-ion battery components.
El-Gawsaky affirmed GAFI's full support, noting the project's alignment with government priorities such as boosting exports, technology transfer, local manufacturing, and job creation. He highlighted benefits from Egypt's economic reform program, which has improved financial, investment, and logistics indicators.
He urged Egyptian firms, including DrasChem, to pursue integrated, export-focused strategies, especially targeting African markets through the African Continental Free Trade Area (AfCFTA). The Ministry of Investment aims to increase exports by about $4 billion from 2024's $7.7 billion, prioritizing chemicals.
Sodium cyanide offers an edge due to its role in Africa's gold mining sector, which produces nearly a quarter of global gold. The planned sodium-ion batteries support goals for higher local content in renewable energy storage.
Bassem El-Shemmy, vice president for strategic partnerships at Austria's Petrochemical Holding GmbH—the largest shareholder in DrasChem—praised GAFI's facilitation of procedures. He described Egypt as ideal, citing proximity to markets, infrastructure upgrades, and access to raw materials like natural gas, ammonia, and sodium hydroxide.
Project partner Draslovka from the Czech Republic will transfer its U.S.-developed proprietary technology to Africa and the Middle East for the first time, positioning Egypt as a regional hub for gold extraction tech and sodium-ion batteries, a sustainable alternative to lithium-ion ones.
Andrey Yurkevich, deputy managing director for strategy at Petrochemical Holding, stated: "The facility will create up to 500 direct jobs and generate around $120 million in annual foreign-currency revenues." He committed to environmental standards, emphasizing the advanced technology's role in reducing import-related pollution.
Egypt will become the first African nation to export sodium cyanide continent-wide, with Phase I exceeding domestic demand fivefold and meeting much of Africa's gold mining needs. The meeting included DrasChem CEO Mohamed Abdel Aziz and others.