This came in a statement from the Egyptian cabinet on Thursday.

KIMA is a subsidiary of the Holding Company for Chemical Industries under Egypt's Ministry of Public Business Sector.

The contract, effective for seven years starting from the furnace's final acceptance date, can be renewed.

The renewal can extend the contract for an additional seven-year period, subject to a new agreement signed six months before expiration.

Minister of Public Business Sector Mohamed Shimy outlined that the target production volume is 18,000 tons annually, generating an expected revenue of $1.4 million for KIMA and approximately $400,000 in annual revenue from by-products.

This brings KIMA’s total anticipated annual revenue to $1.8 million.

The True East Mining Company also commits to a guaranteed minimum payment of $600,000 annually to KIMA.

Minister Shimy highlighted that the collaboration is part of Egypt’s broader strategic efforts to optimize the use of national assets, maximize returns, and improve production efficiency.

It also aligns with efforts to develop the mining and manufacturing industries, reduce reliance on imported silicon-manganese alloys used in iron and steel production, and increase the value added to local ore.

Shimi also noted that the Egyptian Ferroalloys Company had rehabilitated the furnace, which had been inactive for five years, at 53 million EGP.

This collaboration exemplifies a successful public-private partnership and highlights the role of public-sector companies in driving Egypt’s economic development.

Egypt also focuses on boosting the private sector's contributions to the economy, which aligns with the goals entailed by the International Monetary Fund (IMF).

The country is currently under the $8 billion Extended Fund Facility loan programme with the IMF.

According to data from the Ministry of Planning, Economic Development, and International Cooperation, private investments in Egypt increased by 30 percent in the first quarter of  FY24/25.

The country aims to raise the private sector's share of total investments to 65 percent by 2030.

The contract also requires True East Mining to operate and maintain the rehabilitated furnace and sell silicon-manganese alloys in accordance with global standards.

In return, the company will pay KIMA $75 per ton produced and share 30 percent of the value of any by-products.

True East Mining has conducted extensive studies and research into local manganese ore, utilizing advanced technologies to enhance the production of high-quality silicon-manganese alloys used in the iron and steel industry.

Additionally, True East Mining should maintain the furnace throughout the contract period, ensuring its safety and operational efficiency while adhering to industrial, health, and environmental safety standards, including proper waste disposal.