50,000 Tons Annual Production Capacity – $200 Mn. Phase I Investments
DrasChem to Establish Middle East’s 1 st Sodium Cyanide Production Facility in Alexandria
Production to be used in gold extraction and electric battery manufacturing
Localization of U.S. and European technologies for sodium cyanide production in Egypt
The facility to create 500 direct jobs and generate approximately USD 120 million annually in
exports
Egypt to become Africa’s first exporter of sodium cyanide
Chief Executive Officer of the General Authority for Investment and Free Zones (GAFI CEO) Eng.
Mohamed El-Gawsky received a delegation from DrasChem Specialty Chemicals to discuss the steps
required to establish the company’s sodium cyanide production facility at the Sidi Kerir Petrochemicals
Complex in Alexandria.
Both sides reviewed the progress achieved during the previous period, including the approval granted to
the company by the Council of Ministers to operate under the Private Free Zones Framework,
confirmation of full compliance with all Egyptian and international chemical standards safety, and the
commencement of the project’s design and establishment phase, alongside contracting with raw material
suppliers.
The company aims to begin production in 2028 following the completion of the Facility first phase (phase
I), with initial investments estimated at USD 200 million to produce and export 50,000 tons of sodium
cyanide; a key input in gold extraction. The second phase (phase II) will tackle either doubling production
capacity or manufacturing additional sodium cyanide derivatives, culminating in a third phase (phase III)
focused on producing sodium-ion battery components.
Eng. El-Gawsky affirmed full support for DrasChem and provision of all necessary facilitation to
accelerate the Facility construction and commence production at the earliest possible date. He noted that
the project plans align with several government development priorities, including boosting exports,
transferring technology, deepening local manufacturing, and job creation.
GAFI CEO added that the new Facility will benefit from Egypt’s Economic Reform Program
implemented across State institutions, which has resulted in significant improvements in monetary,
financial, investment, trade, and logistics indicators.
He also called on Egyptian companies, including DrasChem, to adopt an integrated export-oriented
industrial strategy with a particular focus on African markets, given the competitive advantage of
Egyptian products across the Continent and the extensive market access opportunities offered by trade
agreements Egypt has joined, foremost among them the African Continental Free Trade Area (AfCFTA).
Eng. El-Gawsky explained that the Ministry of Investment and Foreign Trade is targeting an increase of
approximately USD 4 billion in exports compared to 2024, where exports reached USD 7.7 billion. This
strategy relies on maximizing the potential of sectors with strong competitive advantages, led by the
chemicals sector. He added that DrasChem’s sodium cyanide products have an additional advantage due
to their critical importance to Africa’s gold mines, as the Continent leads global gold production and
accounts for nearly a quarter of total global output.
He further highlighted the importance of the company’s sodium-ion battery products in supporting the
Egyptian government’s objective of increasing local content in renewable energy storage batteries, which
can be used in data centers and to support electricity transmission networks.
Mr. Bassem El-Shemmy, Vice President for Strategic Partnerships at Petrochemical Holding GmbH,
Austria, the largest shareholder in DrasChem, expressed his appreciation for GAFI’s efforts—not only in
facilitating establishment procedures and licensing, but also in coordinating with other State entities to
streamline the company’s administrative procedures.
Mr. El-Shemmy affirmed that Egypt represents the optimal location for launching a sodium cyanide
facility, citing its geographical proximity to target export markets in Africa and the Middle East,
significant upgrades to Egypt’s road and port infrastructure in recent years, and the availability of
essential raw materials, including natural gas, ammonia, and sodium hydroxide (caustic soda).
He added that the project partner, Czech company Draslovka, will for the first time transfer its proprietary
technology—developed at its facilities in the United States—to Africa and the Middle East, contributing
to positioning Egypt as a regional hub for gold extraction technologies and sodium-ion battery
manufacturing, a more sustainable and cost-effective alternative to lithium-ion batteries.
Mr. Andrey Yurkevich, Deputy Managing Director for Strategy and Business Development at
Petrochemical Holding GmbH, stated that the DrasChem Facility will create up to 500 direct jobs and
generate approximately USD 120 million in annual foreign-currency revenues annually. The project will
also enhance the stability and sustainability of local supply chains and strengthen Egypt’s regional role as
the first sodium cyanide production facility in Egypt and the Middle East, marking a qualitative leap in
the chemicals sector.
Mr. Yurkevich reaffirmed the company’s commitment to full compliance with Egyptian and international
environmental and regulatory standards, noting that the advanced technology employed by the facility is
more eco- friendly and eliminates the costs and pollution associated with importing and transporting the
products.
He agreed with GAFI CEO’s urge to focus on African export markets, emphasizing that Egypt will
become the first African country to export sodium cyanide to the Continent. He noted that first-phase
production alone will be five times current domestic demand, while meeting a substantial portion of
African gold mines’ requirements.
The meeting was attended by DrasChem CEO Dr. Mohamed Abdel Aziz, DrasChem Project Manager
Eng. Mahmoud El-Menkhaly, DrasChem Senior Analyst Mr. Vasily Sobolev, Chairman of N Gage
Consulting Mr. Karim Refaat, and a Senior Consultant at N Gage Consulting Ms. Sara El-Fata.
