Algeria mulls changes to mining rules to attract foreign investment

Algeria’s parliament is preparing to vote on legislation that would ease restrictions on foreign ownership in the mining sector, potentially increasing the foreign stake limit from 49% to 80%, according to Bloomberg.

The vote, scheduled for June 16, is part of a broader strategy to diversify Algeria’s economy, which remains heavily reliant on oil and gas exports. Currently, fossil fuels account for more than 75% of the country’s exports and roughly half of its revenue. Falling oil prices have prompted officials to explore alternative sources of income, including untapped reserves of phosphates, iron ore, and lithium.

The International Monetary Fund, which forecasts a 3.5% growth rate for Algeria this year, has encouraged the government to attract more private and foreign capital to support economic diversification.

“There is a global strategic vision for the country to promote and transform high value-added mining products,” said Belkacem Soltani, CEO of Algeria’s state-owned mining firm Sonarem.

Soltani revealed that a domestic fertilizer production initiative based on phosphate mining is in development, in partnership with state energy giant Sonatrach. Additionally, the government plans to issue a call for expressions of interest to mine around 58 tons of gold in the Tirek Amesmessa and Zita region.

He also mentioned that a newly discovered lithium deposit in southern Algeria shows “potential,” although its grade and commercial viability have yet to be determined.