Chinese company to invest $2bn in Egypt’s ‘golden triangle’

A Chinese company plans to invest nearly $2 billion to hunt for phosphates in Egypt’s “golden triangle” area, home to nearly half the country’s gold deposits.

Egypt’s mineral resources minister Karim Badawi discussed the potential development with Hubei Xingfa Chemicals Group, one of the world’s largest phosphate producers, his ministry said.

Badawi said the ministry would soon sign an agreement with the company to start work in three phases. Chinese officials said they would invest nearly $2 billion in the project, the statement added.

Egyptian officials said in December that the ministry was preparing a list of projects to show potential investors in the golden triangle.

Spanning over 9,000 square kilometres, the area in southeast Egypt is due to receive investments of more than $16 billion over 30 years.

Egypt, which is carrying out reforms to stimulate its economy and tackle persistent fiscal deficits, hopes such projects will help spur foreign direct investment.

Further reading:

• Egypt turns to short-term borrowing as debt piles up
• Egypt’s quarterly GDP reaches three-year high
• Egypt to invite investors for projects in ‘golden triangle’ 

The golden triangle contains nearly 95 mineral deposits including gold, phosphates, copper, zinc, lead and limestone, the ministry said.

It has nearly a billion tonnes of phosphates, more than half of Egypt’s reserves of the substance. At around 1.5 billion tonnes and 230 billion tonnes respectively, its glass sand and limestone account for 30 percent and 40 percent of Egypt’s proven reserves of those two minerals.