Canada’s Agrium Inc. has announced that EAgrium has apparently been cleared by the Egyptian Parliamentary Committee of all substantive issues regarding its disputed project in Egypt. The Canadian fertilizer producer said in a statement that "The Previous claims of substantial deficiencies in the project development process have also been proven false."

Agrium's project is located adjacent to the industrial port of Damietta, but Egyptian press reports conveyed that the government is considering new locations for the plant. The alternative destination being proposed is Port Said, near the Suez Canal.

The Egyptian government halted construction of the EAgrium nitrogen facility in April 2008 following protest by local residents.  They are concerned that the plant will pollute the environment.

The new plant is meant to boost Egypt's nitrogen capacity by 20 percent by 2010. The new plant is to give Agrium proximity to Europe and Asia.

© 2008 Mena Report (www.menareport.com)