Imagine a country sitting on massive reserves of lithium, gold, and other precious metals, but leaving them largely untapped until now. Algeria is preparing a historic shift that could bring exceptional investment opportunities – foreign companies will be able to own up to 80% of mining projects instead of the previous limit of just 49%.
Why This Change is Revolutionary for Investors
Algeria’s existing 2014 law was quite restrictive for foreign investors – they could own a maximum of half of any mining venture. The new legislation, set for parliamentary vote on June 16, dramatically changes this and opens doors to international players.
What this specifically means for investment opportunities:
- Possibility of majority ownership in lucrative mining projects
- Simplified licensing processes save time and money
- Access to untapped deposits of strategic materials
- Partnerships with state companies to reduce risks
Where the Greatest Treasures Lie and What They Cost to Access
Algeria possesses impressive mineral wealth that has remained largely unexploited. The country is investing massive amounts in developing key deposits, creating attractive entry points for international capital.
The most interesting investment projects currently include:
- Phosphate deposits Bled El Hadba and Djebal El Onk – combined reserves of 4.7 billion tons with $1.5 billion investment
- Processing facilities in Kebrit – planned financing of at least $4 billion
- Iron ore projects Gara Djebilet and Mecheri Abdelaziz – estimated reserves of 7 billion tons
- Successful partnership with Turkish giant Tosyali – $800 million investment in processing unit
Lithium and Gold: Future Stars of Investment Portfolios
While the entire world searches for new lithium sources for electric mobility and energy storage, Algeria has announced a promising discovery in the southern part of the country. Although details about quality and quantity are “not yet definitively established,” as the head of national mining company Sonarem admits, the potential looks promising.
Equally interesting are the gold mining plans – authorities are preparing a tender for the Tirek Amesmessa and Zita area with estimated reserves of 58 tons. For comparison, Australian firm Terramin already successfully operates a project with 58 million tons of lead and zinc.
Why Algeria Must Diversify and How to Benefit
Algeria’s economy is dangerously dependent on gas and oil exports – these commodities make up over 75% of all exports and half the state budget. When energy prices fluctuate, the entire country feels it. This is why the government desperately seeks new revenue sources.
The International Monetary Fund predicts 3.5% growth for Algeria’s economy while urging the attraction of private capital. For smart investors, this means entering a country with strong motivation to create favorable conditions for foreign partners.
This mining sector transformation isn’t just an economic necessity – it’s an opportunity to position yourself at the beginning of a new era in Algerian industry and benefit from exponential growth in demand for critical materials needed for the global green transformation.
