Summary:

On 4 June 2025, Mining Weekly magazine reported that Algeria is considering new legislation that would allow foreign firms to hold as much as 80% of the ownership of mining projects in Algeria. The new law, scheduled for a parliamentary vote on 16 June 2025, aims to streamline mining permit distribution and attract international investors to develop Algeria’s mineral resources.

In an interview with Mining Weekly, the CEO of Sonarem, Algeria’s state-owned mining group, Belkacem Soltani, stressed the importance of this new law to Algeria’s mining sector, highlighting the country’s strategic vision to promote and transform high value mining products.

The proposed legislation will contain key changes to Algeria’s mining sector such as the increase of the foreign ownership cap from 49% to 80%, introduction of joint exploration and exploitation licenses, streamlined licensing processes for mining operations and reduced restrictions on international participation.

In its latest report on Algeria, the International Monetary Fund (IMF) highlighted that the country achieved 3.5% economic growth. However, the report also emphasized the urgent need for Algeria to diversify its income sources and attract greater private investment beyond the hydrocarbons sector, which still dominates the national economy.

Outlook: 

While Algeria is one of the world’s leading exporters of natural gas, the country is increasingly focused on diversifying its economy away from reliance on oil and gas, particularly by developing its mining and natural resource sectors.

Recent developments, such as the $500 million steel deal with a Chinese firm and the discovery of new reserves of gold and marble in the southern region of the country, reflect Algeria’s new strategic vison.

If enacted, the proposed law would enhance Algeria’s economic proposition to international mining investors, particularly from Western countries and China. This initiative reflects a broader effort to enhance Algeria’s regional standing and reduce its reliance on hydrocarbons. By positioning itself as a competitive player in the mining sector, Algeria aims to compete with neighboring countries such as Morocco (phosphates), Mali (gold) and Mauritania (iron ore).

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