Algeria’s parliament has approved a landmark law allowing foreign companies to own up to 80% of mining projects—a major step in the OPEC nation’s strategy to diversify its economy and reduce dependence on hydrocarbons.
The bill passed with broad support on Monday, and authorities say it aims to streamline investment, strengthen extractive industries, and curb costly mineral imports, which currently total billions of dollars annually, according to Bloomberg.
While Algeria is one of Europe’s key natural gas suppliers, it lags in mineral exports despite bordering resource-rich nations like Morocco (phosphates) and Mali (gold). The country is now targeting development of its substantial phosphate, iron ore, lead, and zinc reserves.
The reform is seen as vital to reducing Algeria’s heavy economic reliance on hydrocarbons, which account for over 75% of exports and nearly half of government revenue, leaving the nation vulnerable to global energy market volatility.
The International Monetary Fund, which forecasts 3.5% GDP growth for Algeria in 2025, has urged the government to pursue diversification and increase private and foreign investment.
Under the new law, companies can now apply for a single mining permit valid for up to 30 years, covering both exploration and extraction phases. The legislation now moves to the senate, which traditionally upholds lower house decisions.
The move comes amid a wider continental shift. Several African nations are updating laws on resource ownership, land, and foreign investment to ensure citizens benefit more directly from their natural wealth. Countries like South Africa, and junta-led Mali, Burkina Faso, and Niger are increasingly asserting national control over strategic assets and industries.