Algeria has taken a significant step towards becoming a key player in the agricultural fertilizer industry by initiating the exploitation of a giant phosphate deposit, without Chinese involvement.
The project has been entrusted to two public entities, Sonatrach and Sonarem (the National Company for Research and Mining Exploitation).
The project’s kick-off was officiated by the Minister of Energy and Mines, Mohamed Arkab, at Bled El Hadba in the far south of Tébessa. This event took place in the presence of the heads of Sonatrach and Sonarem, but notably absent were the Chinese partners who were initially expected to participate in the investment.
This mine is part of an integrated project encompassing the extraction, transformation, and exportation of phosphate.
Mohamed Arkab stated that the Bled El Hadba mine holds a substantial reserve of raw phosphate, capable of being exploited for 80 years, with over 1.2 billion tonnes available, of which more than 800 million tonnes are exploitable.
Production is slated to begin in early 2027, with an annual output of 6 million tonnes of raw phosphate from Bled El Hadba and 5 million tonnes of fertilizers at Oued Keberit in the Souk Ahras province, as per the official agency.
Mr. Arkab emphasized that the exploitation of this phosphate deposit will be carried out entirely by Algerian labor and expertise, led by Sonatrach and Sonarem, with assistance from Algerian university staff.
Algeria Excludes Chinese from Major Mining Project
The Chinese groups, initially involved in this integrated project valued at six billion dollars, were sidelined due to their insufficient financial and technical capabilities.
In May 2023, Tewfik Hakkar, then CEO of Sonatrach (since replaced by Rachid Hachichi), visited China to secure funding for this massive project which was to be operated by the Algerian-Chinese Fertilizers Company (ACFC).
ACFC was established in March 2022 by the Algerian companies Asmidal and Manal, along with Chinese firms Wuhuan and Tian’an, for an investment of 7 billion dollars. The Chinese held a 44% stake, with the Algerian side owning 56%.
However, it became apparent that the Chinese partners lacked the necessary financial resources for such a project, leading Algerian authorities to assign it to the two public groups. Sonarem will handle mine operations while Sonatrach will produce fertilizers.
On the same day, Minister Arkab also launched the construction of a plant for the transformation and production of nitrogen and phosphate fertilizers at Oued Keberit. Construction is expected to take 12 to 18 months, according to Nadia Benyoussef, a central director at Sonatrach, speaking on Algerian Radio’s Channel III.
Nadia Benyoussef elaborated on the project’s operation, noting that raw phosphate extraction at a rate of 10.5 million tonnes per year will occur at Bled El Hadba, then transferred to Oued Keberit for transformation into agricultural fertilizers.
This integrated project, beyond its economic and agricultural significance by achieving fertilizer self-sufficiency, will create thousands of jobs in Tébessa and Souk Ahras provinces. “Whoever controls fertilizers wields significant decision-making power,” stated President Abdelmadjid Tebboune in December 2023.
According to the Minister of Energy and Mines, Algeria ranks among the top 10 countries globally in terms of geological phosphate reserves, with over 3 billion tonnes, of which 1.2 billion are located in the Bled El Hadba deposit.
This move not only enhances Algeria’s strategic position in the global fertilizer market but also showcases its capability to undertake major industrial projects independently of foreign investment.
