Egypt has given the green light for the construction of the Middle East’s first plant to produce sodium cyanide, which is used in the extraction of gold and silver.
The third largest Arab economy, which is seeking to attract industrial capital to boost exports, hopes the project in the Northern Mediterranean port of Alexandria will fetch nearly $120 million per year and create 50,000 jobs for Egyptians.
Draschem for Specialised Chemicals, which is based in Alexandria, will build the plant and begin production in 2028, Egypt’s cabinet said on its website.
Last week, GAFI’s CEO Mohamed El-Gawsaky had said the plant’s output will be primarily used in gold extraction and battery manufacturing, with the majority of slated for exports, generating estimated annual foreign currency revenues of $120 million.
Zawya Projects had reported last week that the production facility will be built in three phases, with $200 million first phase to have annual production capacity of 50,000 tonnes.
The main use of sodium cyanide is in the extraction of gold and silver from low-grade ores, according to the US Society for Mining, Metallurgy, and Exploration.
This process, known as gold cyanidation or the cyanide process, accounts for more than 70 percent of global cyanide consumption, it said.
(Writing by N Saeed; Editing by Anoop Menon)
(anoop.menon@lseg.com)
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