During a meeting with the ministry, the group expressed interest in establishing a project for the exploration, extraction, and production of phosphate ore in the Golden Triangle Economic Zone (GTEZ) in Egypt. The project will be established over three phases once a memorandum of understanding is finalized.
Xingfa Chemicals Group, or Hubei Xingfa Chemicals Group Co., works in phosphorus-based chemicals manufacturing and is a Shanghai Stock Exchange-listed firm. It manufactures 591 products under 15 categories. It is also involved in silicate, sulfuric, fluorine, and alkali industries.
Furthermore, the firm also intends to explore other opportunities in Egypt’s mining and mineral industries. It will continue to coordinate with the ministry to exchange technical expertise and start implementing feasibility studies for the proposed project.
The project is part of Egypt’s plan to improve its mining sector, expand value-added industries with mineral resources, and attract more technologically advanced firms to improve the country’s industrial base, according to Petroleum Minister Karim Badawi.
The energy sector, including mining, is one of five priority sectors in Egypt’s new economic development narrative, which aims to raise the country’s real GDP to 7.5 percent by 2030 and create 1.5 million new jobs.
The plan also aims to increase the mining sector’s contribution to the GDP to five-six percent. The annual foreign direct investment (FDI) target was also set at $24.6 billion, and total exports at $145 billion by 2030, as per the second National Narrative for Comprehensive Development.
Egypt has been welcoming more Chinese investments and projects lately, leveraging China’s development experience.
Chinese direct investments in Egypt rose from $6.8 billion in 2020 to more than $9 billion by the end of 2024. Bilateral trade between Egypt and China exceeded $17 billion in 2024. Revenues from mineral resource development increased by 131 percent to $446 million as of July 2025, compared to the year before.
Meanwhile, Petroleum Minister Karim Badawi recently reviewed the implementation of reforms and incentives in Egypt’s mining sector, targeting start-ups and small- and medium-sized enterprises (SMEs). These included, for instance, the upcoming launch of a digital portal for mining investment opportunities in the first half of 2026.
In November 2025, China invited Egypt to join an initiative granting full tariff exemptions for exports to the Chinese market. Prime Minister Mostafa Madbouly had indicated investment opportunities with China in localizing industry, technology transfer, electric vehicles, home appliances, electronics, and renewable-energy components, including solar panels and wind turbines.
Short link: