Arezki Zerrouki, advisor and expert in mineral resources and geology, confirmed that the new draft law on mining activities, currently under review by Parliament, ensures the renewal of the sector, as it is “the result of an evaluation of the current law.” He anticipates that the implementation of structural projects will help increase the mining sector’s contribution to the gross domestic product (GDP) from the current 1% to around 15%.
In an interview with El Massa, expert Zerrouki stated that the new mining law promises better management of the sector, leading to its development and that of the country, through an increased contribution to GDP. He pointed out that issues such as environmental protection, facilitation of investment, opening the sector to both local and foreign private operators, simplifying administrative procedures, and recognizing the legal value of mining licenses — all addressed by the new law — would help attract investment capital and strengthen its role in the economy, particularly in the industrial sector.
Regarding concerns expressed by some about the possibility that the new law could undermine Algeria’s sovereignty over its nationalized mineral resources, he considered such concerns unfounded. He cited the state’s massive investments in the mining sector since independence, especially through the Sonarem group and its subsidiaries, which have worked to attract private national and/or foreign investments by sharing risks while protecting the country’s “sacred and non-negotiable” sovereignty. He explained that the mining sector requires significant financial resources, and that under the new law, the state will participate in the capital of mining companies tasked with creating wealth, generating jobs, and paying taxes, while ensuring oversight by regulatory bodies. “The aim of the law is also to benefit from the expertise and technologies of leading international mining companies.” It also includes a right of pre-emption as a mechanism to protect the state’s interests.
The expert emphasized that the principle of state control over mines, which led to their nationalization, still stands, “even though the context is now different.” He highlighted the political will to relaunch the sector with a more sustainable and realistic economic vision, by encouraging more local content, the direct processing of resources to achieve higher added value, and a near-total ban on exporting available raw materials. He considered these the same principles on which the current draft mining law was developed.
Addressing Algeria’s capacities in the field, he noted that more than 85% of the granted licenses are used for quarrying. He explained that the updated inventory of resources confirms a significant diversity, and that analysis of mining product imports and exports reveals a preference for importing minerals that are available locally in both quantity and quality. He stressed that exploiting these materials would reduce imports, increase local capabilities, and allow the public treasury to achieve hundreds of millions of dollars in gains — not to mention the direct and indirect job opportunities and tax revenues.
He believes it is important to launch exploration operations with the help of qualified experts and laboratories for certain materials considered “strategic and important” by developed countries. For Algeria, he sees iron, lead, and zinc as strategic materials, while lithium is not currently considered as such due to the lack of an industry that uses it — though this could change. He emphasized the need to develop and exploit basic resources and discussed the strategic importance of the three major structuring projects (Gara Djebilet, Oued Amizour, and Oued El Hedba), which could provide thousands of direct jobs and tens of thousands of indirect ones, while supporting the economic and industrial fabric, particularly in the automotive, steel, agriculture, and chemical sectors.
Regarding environmental issues, which have become a source of concern, the expert stated that, contrary to popular belief, environmental protection is at the heart of public authorities’ concerns. Since 2001, mining laws have included stricter environmental protection measures. Algeria has a broad legal framework and has ratified numerous international conventions related to environmental protection as part of sustainable development. He noted that the mining law requires companies to allocate 2% of their annual sales revenue for site rehabilitation. He cited the exploitation of the Tala Hamza mine in Oued Amizour (Béjaïa) as an example, where the Algerian side has repeatedly rejected the foreign partner’s proposals for environmental and public safety reasons.
Concerning the state’s intention to establish a true metal transformation industry, he referred to presidential directives emphasizing on-site extraction, which would extend the value chain, enable greater added value, and supply final products to sectors with high demand. The new draft law also includes a local content requirement for processing minerals within the country, rather than exporting them in raw form. He noted that Algeria has the necessary resources to manage these projects and has created mechanisms to benefit from foreign expertise, highlighting the creation by Sonarem of a training company as evidence of the public authorities’ commitment to training executives and professionals in the sector.
Sources : El-Massa, 1er juin 2025