Algeria introduces sweeping mining reforms to attract global investors

ALGIERS, Algeria (MNTV) — Algeria has enacted a new mining law aimed at revitalizing its underdeveloped mineral sector, easing restrictions on foreign ownership, and encouraging global investment to diversify the nation’s hydrocarbon-reliant economy.

The legislation, known as Law No. 25-12, came into effect on August this year, replacing the decade-old framework established by Law No. 14-05 of 2014. 

The reform is a central pillar of the government’s broader economic diversification strategy, designed to capitalize on Algeria’s vast but largely untapped reserves of gold, iron, phosphates, zinc, and other minerals.

Although Algeria ranks among the world’s top ten holders of natural gas reserves and is the fourth-largest gas exporter, mining currently contributes less than one percent of its gross domestic product. 

Authorities hope the new legal framework will change that by fostering a more transparent, competitive, and investor-friendly environment.

A key provision of the new law is the relaxation of the long-standing 49–51 ownership rule that limited foreign investors to minority stakes in joint ventures with state-owned enterprises. 

Under the new regime, foreign companies can now directly apply for prospection authorizations and exploration permits without local intermediaries.

For mining operations, permits must still be held by an Algerian entity, but foreign investors may own up to 80 percent of the company’s share capital—while a minimum 20 percent stake remains with a state-owned enterprise. 

This marks a significant liberalization of the sector, as prior law capped foreign participation at 49 percent. In contrast, foreign ownership in quarry operations remains restricted to 49 percent to ensure domestic majority control.

The law also extends the duration of mining permits, allowing exploitation licenses to last up to 30 years, with possible 20-year renewals, compared to the previous 20-year cap. Quarry permits can now run for 15 years, renewable in 10-year increments based on resource viability.

Officials have emphasized that these changes will simplify bureaucratic procedures and enhance investor confidence. The new system introduces standardized contracts—known as cahier des charges-type—to define specific obligations, investment commitments, and environmental standards. 

Implementing regulations and ministerial orders are expected to clarify additional technical details in the coming months.

To strengthen domestic benefits, the law mandates local content requirements. Companies must prioritize Algerian suppliers when feasible, employ and train local workers, and invest in local processing and refining. 

These measures aim to build national expertise, create jobs, and ensure the sector contributes to sustainable economic development. Fiscal policies governing mining operations will continue to follow existing finance laws until new tax structures are introduced. 

The framework includes surface fees and royalties that vary by resource type. Any transfer of mining titles must receive prior approval from the Algerian National Mining Agency, and the state retains pre-emption rights in cases involving foreign ownership.

Analysts say the reforms reflect Algeria’s ambition to reduce dependence on hydrocarbons, which accounted for 14 percent of GDP and nearly half of budget revenues between 2019 and 2023. The success of the new regime, however, will hinge on the clarity and consistency of its implementation.

If effectively enforced, the New Mining Law could unlock Algeria’s geological wealth, attract long-term foreign partnerships, and transform the country into a leading mining hub in North Africa.