Cairo: Minister of Petroleum and Mineral Resources Karim Badawi witnessed the signing of a memorandum of understanding between the Egyptian Mineral Resources Authority, Phosphate Misr, the New Valley Company for Mineral Resources and Oil Clay (WADICO), and China's Xingfa Group. The MoU, signed on Tuesday, January 27, 2026, aims to study and evaluate phosphate ore, quartz, and silica sands in Egypt's Golden Triangle region. This endeavor marks a preliminary step toward creating an industrial project that adds value to these raw materials, as stated by the petroleum ministry.

According to State Information Service Egypt, the agreement is a result of recent discussions aimed at attracting Chinese investment into Egypt's mining sector. Xingfa, a major industrial group from China, is looking to leverage Egypt as its largest industrial hub outside of China. The MoU signifies a move from mere promises to actionable steps under a clear timeline and roadmap, as highlighted by Badawi. This collaboration seeks to develop comprehensive mining projects encompassing exploration, extraction, and advanced manufacturing to maximize economic returns from Egypt's mineral resources.

Badawi emphasized that the robust relationship between Egypt and China is crucial for the anticipated success of this large-scale investment in the Golden Triangle area. Meanwhile, Mingqing Lu, deputy general manager of Xingfa Group, expressed confidence in Egypt's investment climate and the positive role of the petroleum ministry in facilitating the commencement of operations. He noted the group's commitment to introducing modern technologies to Egypt, which would help the country become a regional hub for exporting specialized chemicals. Mingqing Lu also extended an invitation to Badawi to visit Xingfa's headquarters in China to observe the facilities and factories planned to be replicated in Egypt.