President Tebboune Prioritizes Mining and Steel Sectors in Algeria's Economic Diversification
Image: Echorouk
Takeaway
The Algerian government's intensified focus on mining and steel presents opportunities for international investors, particularly with the revised mining law allowing up to 80% foreign ownership. Investors should closely monitor the development of key projects like Gara Djebilet and the expansion of AQS, while also assessing the impact of trade barriers and lobbying efforts in the US and EU. Companies involved in mining technology, equipment, and infrastructure stand to benefit from Algeria's modernization efforts.
President Abdelmadjid Tebboune chaired a working meeting on March 26, 2026, dedicated to the mining and steel sectors, signaling a strong government focus on developing these industries. The meeting underscores Algeria's intent to diversify its economy away from its reliance on hydrocarbons, which currently account for over three-quarters of exports and about half of state revenue. The government views the mining sector as a key driver for economic diversification, aiming to fully explore and exploit the country's untapped mineral deposits.
Algeria's push to bolster its mining and steel industries aligns with broader efforts to attract foreign investment and reduce costly imports. In August 2025, Algeria enacted Law No. 25-12, reforming its mining legislation to allow foreign companies to hold up to 80% ownership in mining projects, a significant increase from the previous 49% limit. This legislative change aims to streamline the investment process and boost extractive industries. The International Monetary Fund (IMF) has urged Algeria to seek alternative income streams and attract more private capital, further motivating the focus on these sectors.
Algeria possesses substantial deposits of phosphate, iron ore, lead, and zinc. The country's phosphate reserves are among the largest in the world, and there are plans to increase phosphate production for export. The Gara Djebilet iron ore mine is a key project, with the first iron ore processing plant scheduled to begin operations. The Algerian Qatari Steel Company (AQS) in Jijel, a result of an Algerian-Qatari partnership, has a production capacity estimated at 2.5 million tons annually. AQS is undergoing a major upgrade to reach a production capacity of 4.4 million tons, specifically targeting the flat steel market.
The development of the mining and steel sectors is expected to benefit various industries, including construction, automotive, and manufacturing. Tosyali Algérie, based in Oran, launched its flat steel production and galvanizing units in January 2026 and is targeting $1.5 billion in export revenues for 2026. However, the U.S. Department of Commerce imposed a preliminary countervailing duty of 72.94% on Algerian steel rebar on January 15, 2026, which is expected to significantly restrict Algerian exports to the North American market. Tosyali Holding is lobbying the European Union to lift steel import quotas for "sustainable" producers like Algeria.
In the near term, keep an eye on the progress of the Gara Djebilet iron ore project and the expansion of the Algerian Qatari Steel Company. The Algerian government has committed to mapping and evaluating its strategic mineral reserves by 2027, with the goal of launching at least five new industrial-scale mining projects by 2030. Potential risks include the need for modernization of mining technology and infrastructure, as well as managing the environmental and social impacts of mining.