Highlights

• Chinese state-owned Baogang Group signed a strategic cooperation agreement with African Great Wall Exploration Company during a diplomatic mission to Mozambique.
• The partnership aims to leverage Baogang's geological expertise and technology with African Great Wall's local operational knowledge.
• This deal represents China's continued efforts to secure critical mineral resources and expand diplomatic ties in Africa.

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In a move signaling China’s continued push to secure critical mineral supply chains abroad, Inner Mongolia-based Baogang Group (Baotou Steel) signed a strategic cooperation agreement with African Great Wall Exploration Company during a high-level visit to Mozambique, according to Baogang Daily.

Baogang Group Delegation to Mozambique

The July 16–21 trip was led by Wang Lixia, Chairwoman of the Inner Mongolia Autonomous Region (opens in a new tab), as part of a broader diplomatic mission to Kenya and Mozambique aimed at advancing China’s “Five Key Tasks” and solidifying China-Africa cooperation under Xi Jinping’s foreign policy framework. Baogang’s Chairman, Meng Fanying, joined the Mozambique leg of the trip, where the agreement was formally signed in the presence of Wang.

Mozambique, rich in untapped mineral reserves and strategically located along the Indian Ocean trade routes, has become a key target for Chinese resource investments. The capital city, Maputo, is a critical East African port linking trade between Africa, Europe, and Asia.

The agreement brings together Baogang’s deep bench of geological talent and mineral exploration technology with African Great Wall’s local know-how and operational experience. The partnership, described by Chinese officials as a “powerful alliance of complementary strengths,” is viewed as a milestone in China-Mozambique relations—coinciding with the 50th anniversary of diplomatic ties between the two nations.

While the exact minerals involved were not disclosed, Baogang is a major producer of rare earths, steel, and raw materials for green technologies. This deal could bolster China’s access to key raw materials in a period when Western nations are scrambling to diversify away from Chinese supply chains. The West, particularly the U.S., may view this development as another warning signal in the global race for critical minerals—especially in regions where China continues to outmaneuver Western firms diplomatically and commercially.

During the visit, Meng also met with Mozambique’s Minister of Economy, the national oil and gas company, and the Chinese Chamber of Commerce in Mozambique. Additional meetings included logistics and steel market site visits, as well as signing a sister-city agreement between Baotou (Baogang’s headquarters) and Quelimane, Mozambique.

As China further embeds its state-owned giants into Africa’s resource base, the strategic implications for global critical mineral competition are growing harder for Western policymakers to ignore.

Source: Baogang Daily (包__钢日报), July 25, 2025

Translated and summarized by Rare Earth Exchanges™.