Algeria Renews Bid for Mineral Exploration

A 2023 draft law to allow foreign firms into Algeria's underdeveloped mining sector has come up again.

Image: GMK Center

As of June 2025, the Algerian government is advancing a draft mining law, presented by the Energy, Mines, and Renewable Energy Minister to Parliament on 17 May, with a vote scheduled for 26 June. The legislation is inspired by Saudi Arabia’s mining reforms and aims to open Algeria’s mining sector to foreign investors to reduce reliance on volatile oil and gas revenues, which account for over 75% of exports and half of state revenue. The law seeks to boost production of minerals such as phosphate, iron ore, and lithium, in an effort to foster economic diversification amid depleting reserves and rising debt. However, it has faced rare public backlash since the announcement, with Algerians voicing concern over national sovereignty.

Algeria to pass a law to encourage investments in the mining sector

Desperate Bid?

This initiative aligns with Algeria’s broader economic strategy, including a $3 billion loan from the Islamic Development Bank to support infrastructure development, such as railway networks, to facilitate mining and trade, with China as a key partner.