According to a report published by the global magazine Meed: The Algerian industry is gaining an escalating momentum – Algerian dialogue

Mohamed Yassin Mansour

Algeria is witnessing an increasing activity in the projects of the energy, industry and industrial sectors, within the framework of an integrated strategy, which is based on the exploitation of natural resources to produce commodities of added value locally, instead of exporting raw materials only.

The country is making a steady progress in the projects of extracting gas, lehium, iron and phosphate extraction, in parallel with the development of local industrial facilities to address these resources and convert them into final products such as iron, steel, fertilizers and cars.

Gas projects

Last month, Algeria granted five out of six licenses to explore oil and gas, which was shown as part of the 2024 licensing round, in a move that was considered success by those involved in the country’s energy sector.

The licenses winning companies included: French Total Energy, Qatar Energy, Italian Eni and Thai PTTEP.

A source in the sector told Meed Global Magazine: “The ability to attract major international oil companies with great technical and financial capabilities represent an advanced and important step for the oil and gas sector in Algeria.”

This is the first round of its kind to be regulated by Law 13-19, issued on December 11, 2019, which replaced the law in 2005, which managed the last round of licenses in 2014, which only produced four out of 31 licenses.

If the results of 2014 were repeated in the 2024 round, that would be a severe blow to Algeria’s energy strategy, and fundamental questions were raised about the effectiveness of the 2019 law.

The licensing round followed high meetings between President Abdel Majid Taboun and delegations from the American Exxon Mobil and Chevron, which paved the way for additional development projects in the gas sector, and enhances local production.

A strong payment in the phosphate sector

The Algerian mining sector is moving at a steady pace, and at the top of its giant projects, the phosphate project of the Al -Haddaba, which is estimated at 7 billion dollars, and includes reserves of about 1.2 billion tons, of which 800 million tons are exploited, which makes it among the largest in the world.

A partnership was concluded in March 2022 between four Algerian and Chinese companies to develop the project, which resulted in the establishment of a joint stock company named: The Algerian -Chinese Fertilizer Company (ACFC).

The company is owned by 56 % for Algerian companies, “Asdal”, “Algeria Mines (Manal)”, and 44 % for the two Chinese companies “Wahwan” and “Tianan”. The company is expected to produce about 5.4 million tons of fertilizers annually in Tebessa.

The initial engineering design contract for the project was assigned to Saipem last month, while the start of the “Valley of Sulfur” complex to treat phosphate extracted by 2027.

Iron mining

The Gaejilal mine in the state of Tindouf is another pivotal project, and it entered into operation in July 2022, with a plan to produce 2 million tons annually by 2026, and a long -term goal to produce 50 million tons annually by 2040.

The mine reserve is estimated at 3.5 billion tons, of which 1.7 billion tons are exploited, which makes it a candidate to be the largest iron mine in the world.

Algeria hopes that this project will contribute to supporting the local steel industry and reducing dependence on imports, although production raising may require investments ranging between 7 and 10 billion dollars.

Auto

The availability of low -cost steel is expected to be reflected in the growth of the Algerian auto sector.

In March 2025, the Chinese company Great Wall Motor, one of the largest car companies in China, announced plans to build its first factory in Algeria, to join companies such as Fiat, Peugeot, and Kia.

Last November, the Algerian Pharmaceutical Ministry of Industry and Pharmaceutical Production granted licenses to establish six new cars assembly factories.

In March 2023, Stelantis Group revealed plans to invest more than 200 million euros to produce “Fiat” models in Algeria, with expectations to create about 2000 local jobs and production capacity of 90,000 vehicles annually.

Petrochemical production

The local auto sector is also expected to benefit from plastic derived from petrochemicals that are produced using Algerian natural gas.

British Petrofac and Chinese HQCEC are currently implementing a petrochemical project of approximately $ 1.5 billion in the Arzio Industrial Zone.

The engineering, purchases and construction contract (EPC) was signed with Step Polymers of the Sonatrach Complex in June 2023, and the project includes the establishment of two integrated units: the hydrogen removal unit (PDH) and a polypropylene production unit with a production capacity of 550 thousand tons annually.

Zinc projects

Last November, Western Mediterranean Zinc (WMZ), a joint Algerian-Australian project, concluded a $ 336 million contract with the Chinese Sinosteel Mecc company to develop the Tala Hamza Lina Project in the state of Bejaia.

The Australian company Terramin has 49 % of the project, while Algerian government companies have the remaining percentage.

The project includes a mine with a production capacity of 2 million tons annually, as well as a processing unit with the same energy, and the production of zinc will support the batteries and electric cars industry in Algeria.

Expansion in the fertilizer industry

With the increase in phosphate production, Algeria is moving towards expanding the fertilizer sector. A recent report revealed that Sonatrach is working to develop a project to expand the fertilizer complex in Arzio, which was mainly built under a contract worth $ 2.4 billion in 2008 between the Korean “Daewoo” and the Japanese “Mitsubishi”, and was completed in 2013.

Continuous development

By making fixed progress in implementing an integrated industrial strategy, it depends on the exploitation of raw resources to produce value -added exports, Algeria creates a promising industrial environment that provides great opportunities for multi -sectors companies. If relative political stability continues, the country will attract more foreign investments, which enhances the expansion of the Algerian market for projects in the coming years.