Alexandria: CEO of the General Authority for Investment and Free Zones (GAFI) Mohamed el Gawsaky asserted GAFI's full support for Draschem for Specialized Chemicals, ensuring all necessary facilitation to accelerate the implementation of the first sodium cyanide production plant in Egypt and the Middle East. This plant will be established within the Sidi Kerir Petrochemicals Complex in Alexandria.
According to State Information Service Egypt, during his meeting with the company's delegation, Gawsaky emphasized that the project aligns with the country's developmental priorities, particularly those related to increasing exports, transferring and localizing advanced technology, deepening local manufacturing, and creating sustainable job opportunities. He noted that the plant would capitalize on the results of Egypt's economic reform program, which has significantly improved investment, trade, and logistics indicators.
Gawsaky also mentioned that the Ministry of Investment and Foreign Trade aims to boost exports by $4 billion compared to $7.7 billion in 2024. The focus will be on sectors with high competitive advantages, particularly the chemicals sector. He highlighted that Draschem's sodium cyanide products hold strategic importance for gold mines in Africa, which account for about a quarter of global gold production.
The Draschem project plans to commence production in 2028 after completing the first phase, with initial investments of $200 million and a production capacity of 50,000 tons of sodium cyanide annually. The sodium cyanide will be primarily used in gold extraction and battery manufacturing, with the majority of production destined for export, generating estimated annual foreign currency revenues of $120 million.
The project's roadmap also includes a phase-two expansion to increase production or manufacture other sodium cyanide derivatives and a phase-three goal of producing sodium-ion battery components. This aligns with Egypt's efforts to enhance the local content of energy storage batteries, particularly for use in data centers and power grids driven by renewable energy.