Syria’s Ministry of Energy, through the General Establishment for Geology and Mineral Resources, signed two agreements aimed at boosting phosphate investment and increasing Syria’s export capacity.
According to a statement published by the establishment on Monday, 19 January, the agreements were signed with Eastern Trading and Contracting Establishment (ETE) and Al-Hasan Holding.
The first agreement, signed with Eastern Trading and Contracting Establishment (ETE), covers the investment of 1 million tons of phosphate from the “mine site,” including exploration, production, and export operations. The company is described as one of the oldest and most prominent Saudi firms working in general contracting and construction-related industries. It was founded in 1971 in Saudi Arabia’s Eastern Province.
ETE began as a general trading and contracting firm before gradually expanding into an integrated business group covering a wide range of activities linked to construction, industry, and logistics, drawing on more than 50 years of experience in the local market.
The second agreement, signed with Al Hasan, provides for the sale of 1 million tons via land transport and 1.5 million tons via sea transport. The company is one of Bahrain’s private investment groups, founded in the Kingdom of Bahrain in 1967 by Abbas Mohamed Al-Hasan.
Al-Hasan Holding operates under a parent company model, overseeing a group of subsidiaries. Its portfolio spans industry and manufacturing, general trade, energy, construction and contracting, and logistics, alongside investments in other fields such as tourism and industrial services. The diversification, according to the statement, broadens income sources and reduces the risks of relying on a single sector.
The establishment said the step aims to expand marketing channels and increase revenues as part of the ministry’s plan to strengthen the phosphate sector as a strategic resource for the national economy.
Siraj Al-Hariri, director general of the General Establishment for Geology and Mineral Resources, said the signing of new phosphate export contracts comes within what he called “completing the path of victories” in Syria, and as a qualitative addition to the mineral resources sector.
Al-Hariri added that ETE will handle the entire investment process, starting from the mine site and moving through exploration and production, to marketing and export, in an integrated management of the sector’s value chain.
Regarding the contract with Al-Hasan, he said exports will follow two routes, sea transport and land transport, and that 1 million tons of phosphate will be exported overland through Turkish territory.
Al-Hariri considered the move a continuation of earlier steps by the Energy Ministry’s establishment, intended to raise phosphate production capacity and increase exports to global markets, enabling Syria, as he put it, to secure its presence as a “real number” on the regional and international competitive map in this field.
He added that the current phase is the first stage of the plan, focused on exporting raw phosphate and increasing production capacity. Later phases are expected to shift toward downstream processing industries and building local and foreign partnerships to increase the added value of Syria’s phosphate resources.
Al-Hariri noted that one of the key features of the contracts signed today, especially the Al-Hasan contract, is that they rely on representation by local companies that will take part in implementation through several partners on the ground, opening the door to real job creation. He added that ETE will also rely on local companies in exploration and development work, while bringing in experts from outside Syria, which he said would further raise the technical and economic value of the projects and deliver broader benefits to all parties.
Phosphate as a Core Pillar
Phosphate is considered one of Syria’s key mineral resources, a strategic commodity of high economic importance. It plays a central role in keeping public construction companies and private sector firms operating through contracts related to overburden removal, production, and land transport.
Phosphate’s importance is not limited to being a raw export material; it also helps drive multiple industrial and service sectors.
According to the General Establishment for Geology and Mineral Resources, the added value of phosphate becomes clearer with the development of production facilities, which enables the delivery of a higher quality product with greater market value than raw material.
Such development contributes to higher financial returns and more diverse export markets, while directly supporting Syria’s domestic phosphate fertilizer industry, with positive effects on agriculture and the national economy overall.
Syria’s phosphate mines are concentrated in the al-Sharqiya and Khneifis areas (east of Homs Governorate, central Syria), with annual production capacity exceeding 3.25 million tons.
Challenges Facing the Sector
Phosphate extraction faces a set of difficulties and challenges in two main areas:
Technical and operational challenges: These include the deterioration of infrastructure needed for stable land transport, fluctuations in transport fees, a shortage of specialized technical staff, aging machinery and equipment at worksites, and selling the product at the plant site instead of delivering it onto ships, due to consumption and declining efficiency of infrastructure in phosphate mines. Impact of Western economic sanctions: Sanctions affecting fertilizer plants that purchase Syrian phosphate have created space for intermediaries and contributed to weakening Syrian phosphate prices in global markets. Additional constraints include restrictions on banking operations inside Syria. Phosphate is also subject to intense global competition from producing countries, especially those with advanced ports and no sanctions impeding their operations.Improving Specifications and Supporting Local Industry
The Energy Ministry is working to develop and operate phosphate concentration plants, according to a statement published by the establishment on 9 January. The effort focuses on developing the production chain, increasing output, and improving quality by converting raw phosphate into a concentrated product capable of meeting both domestic and global demand.
Concentration processes help improve the raw material’s technical specifications by removing impurities and raising phosphate content. These plants also provide improved raw materials for local industries, particularly phosphate fertilizer production, supporting agricultural output and strengthening food security.
The concentration process at the phosphate washing plant removes clay impurities and converts raw material into high-quality washed phosphate. After washing, phosphate undergoes advanced drying processes that reduce moisture to less than 1%, preparing it for storage and shipping in line with internationally recognized specifications.
The washing plant’s role is not limited to improving product quality; it also supports phosphate-related processing industries, creates job opportunities, and contributes to stimulating local economies in production areas. Upgrading the washing plant also makes it possible to recycle part of the water and resources used, and reduce waste generated during loading and drying operations.
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