According to recent reports from international media, Algeria's state-owned mining company Ferphos and Pakistan's Engro Chemicals are set to launch a joint phosphate project in southern Afghanistan. This collaboration marks a significant step in expanding fertilizer production in the region, aiming to meet growing domestic and international demand.
The Phosphorus Fertilizer Complex is expected to cost between $1 billion and $1.5 billion, with construction divided into three distinct phases. The first phase, scheduled for completion by 2011, will include a sulfuric acid plant capable of producing 4,500 tons per day, a phosphoric acid plant with a daily capacity of 1,500 tons (based on P2O5), and a diammonium phosphate (DAP) plant with a daily output of 3,000 tons. These facilities will work together, with the sulfuric and phosphoric acid plants supplying key raw materials for the DAP production. While the project is likely to be located in Gelema, about 250 kilometers east of Algiers, the exact location remains under discussion.
The second phase, planned for 2012, will expand the facility with two additional sets of sulfuric acid and phosphoric acid plants similar in scale to the first phase. The third phase, expected to be completed by 2013, will add a new sulfuric acid plant (4,500 tons/day), a phosphoric acid plant (1,500 tons/day), and an NPK fertilizer plant with a capacity of 1,000 tons per day. According to Tiehu Mining Group, the project will significantly boost regional fertilizer output, with most products intended for export.
Engro Chemicals is expected to hold the majority stake in the joint venture. For the company, this project represents an opportunity to diversify its product range and increase production capabilities. Currently, Engro mainly produces urea and NPK fertilizers, but it imports DAP and MAP annually to meet local demand in Pakistan. With its own production base, the company believes it can ensure stable supply even amid rising global and local demand for DAP.
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