Algeria has enacted a comprehensive Mining Law that modernizes the regulatory framework, attracting both domestic and foreign investors to the country’s mineral sector. The law replaces the previous mining code, aiming to reduce administrative barriers, enhance transparency, and facilitate access to capital and technology in the nation’s rich natural resources landscape.
Key Reforms in Algeria’s Mining Sector
Opening Access to Strategic Metals
Previously, the exploration and exploitation of strategic minerals were reserved for state-owned enterprises. The new law eliminates this exclusivity, allowing private and foreign investors to access previously restricted deposits under general ownership rules. This reform is expected to boost investment in critical metals, including copper, lithium, gold, and zinc, supporting Algeria’s integration into global supply chains.
Shareholding and Foreign Investment
Foreign investors are required to hold mining titles through Algerian-incorporated entities. State-owned mining companies maintain a default, non-dilutable 20% equity stake, with the possibility of negotiating higher shares based on economic interests. Quarry operations now require a minimum 51% Algerian ownership, ensuring local participation while still welcoming foreign expertise and capital.
Clarified Mining Titles
The new law distinguishes between exploration and exploitation titles:
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Exploration titles are movable property, transferable but not mortgageable.
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Exploitation titles create limited real rights separate from land ownership and may be transferred, mortgaged, or leased with approval from Algeria’s National Agency for Mining Activities (ANAM).
These reforms improve bankability, enabling investors to secure financing for mining projects more easily.
Extended and Renewable Permits
Exploration and mining permits now feature clearly defined durations and renewal conditions:
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Exploration permits are renewable multiple times, while exploitation permits may extend up to 30 years, with successive renewals tied to exploitable reserves.
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Quarry exploitation permits are renewable up to 15 years, ensuring long-term project stability.
Holders demonstrating commercially viable deposits gain inventor’s rights, granting priority for exploitation permits.
Streamlined Procedures
The law simplifies administrative processes: applications for mining permits and authorizations undergo prior evaluation at the regional level. Favorable assessments remain valid when converting exploration titles to exploitation permits. Quarry permits are issued following ANAM’s opinion, reducing bureaucratic delays.
State Pre-emption Rights
Algerian state-owned companies now hold pre-emption rights on transfers of mining titles with foreign ownership, except for intra-group transfers. This measure ensures strategic oversight while maintaining investor flexibility.
Environmental and Operational Changes
The new framework narrows the scope of classified facilities (“établissements classés”), excluding exploration and extraction activities from specific environmental permits. Only processing, refining, enrichment, and recovery facilities remain subject to the classified regime.
Local Content and Workforce Development
The law introduces local content requirements, prioritizing Algerian providers for goods and services and encouraging local hiring and training. ANAM may also mandate in-country processing or refining, supporting value-added mineral production.
Mining Waste Regulation
The new legislation establishes a legal framework for the use of mining waste and tailings. Algerian entities can exploit waste on a first-come, first-served basis, while permit holders can utilize byproducts from their operations with simple notification to ANAM.
Transitional Provisions
Mining titles under the previous law remain valid until their expiration. Holders have a grace period to convert to the new regime, after which unconverted permits continue until their term but cannot renew under the old system. Existing tax provisions remain in effect until replaced.
Strategic Outlook
Algeria’s revamped Mining Law is positioned to transform the country into a hub for critical metals and raw materials investment. By opening access to copper, lithium, gold, and zinc, streamlining permitting, and emphasizing local content, the law strengthens Algeria’s competitiveness while supporting sustainable development in the mining and tech sectors.
