According to a report by the German daily Die Welt, Egypt intends to mine natural uranium in the Sinai Peninsula and enrich it to weapons' grade material with the help of Chinese technology. The material would then be used on long-range missiles.

Egypt has denied the existence of any military nuclear project. The International Atomic Energy Agency, located in Vienna, confirmed that it has no information on nuclear developments in Egypt. The paper claimed that despite the denial, there have been increased hints that Cairo was stepping up its attempts to attain and enrich uranium, so as to be able to produce nuclear weapons in the future.

In January of this year, Egyptian President Hosni Mubarak set out for an official trip to China. During the visit the two countries signed an agreement on cooperation. Most of the details of the agreement have remained confidential, although security sources believe that the agreement between the two countries regards cooperation on matters of research, development, use of uranium sources and especially "Chinese aid for mining natural uranium in the Sinai Peninsula."

—Sources: Ha'aretz Service, Die Welt.