Algeria ready for the “denationalization” of its rich mining sector?

To diversify its economy, Algeria wants to open up the exploitation of its mineral reserves to foreign investors. This ambition is facing strong internal opposition fueled by fears of a loss of sovereignty over the country's resources.

Algerian President Abdelmadjid Tebboune, seen here on September 17, 2024, approved a bill opening the country's mining sector to foreign investors at a Council of Ministers meeting. PHOTO ALGERIAN PRESIDENCY/ANADOLU/AFP

Several Algerian parliamentarians and political parties have expressed opposition to a new government bill aimed at opening the country's vast mineral reserves to foreign investors, reports the pan-Arab news site The New Arab . Their fear? That sovereignty over the country's resources will be compromised.

The draft bill, which will be put to the vote on June 26, provides for a non-majority stake in mining projects by national partners (only 20% of the capital), provoking virulent criticism from parliamentarians who are calling for the text to be withdrawn altogether.

"We cannot draft an article that caps national participation while offering a strategic advantage to foreign companies," protests MP Ahmed Beldjilali, who believes that the new law excludes local investors in favor of foreigners.

Until now, investments in the hydrocarbon and mining sectors were governed by the 51-49 rule (49% for foreign investors and 51% for local investors). Algerian President Abdelmadjid Tebboune supported the new project in February 2023 before the Council of Ministers.