Algeria to launch phosphoric acid plant by 2027 as part of major mining push

Algeria is aiming to launch a phosphoric acid production plant by late 2026 or early 2027 as part of a vast integrated phosphate project designed to unlock the country’s mining potential and drive economic diversification, President Abdelmadjid Tebboune said.

Speaking during a televised meeting with national media broadcast on Saturday, Tebboune said work was advancing on the flagship project located in Bled El-Hadba, a key component of Algeria’s strategy to fully develop its phosphate resources.

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“The integrated phosphate project is underway, with the phosphoric acid plant scheduled to launch in late 2026 or early 2027,” Tebboune said, noting that the initiative covers the entire value chain, from extraction to processing and transformation.

Algeria Phosphoric Acid

The project is one of Algeria’s most ambitious industrial undertakings in recent years and is expected to significantly boost the country’s position in the global fertiliser market, where phosphoric acid is a crucial input.

Authorities say the development will not only increase export capacity but also support domestic industries linked to agriculture and chemical production.

Tebboune emphasised the project’s economic impact, highlighting its potential to generate tens of thousands of jobs in a country where unemployment, particularly among young people, remains a pressing concern.

He said the initiative reflects a broader push to diversify Algeria’s economy away from hydrocarbons, which have long dominated state revenues but remain vulnerable to fluctuations in global energy prices.

Algeria is one of Africa’s leading oil and gas producers, but officials have increasingly sought to tap into the country’s vast mineral reserves as part of a long-term development strategy.

Tebboune said Algeria possesses “countless” untapped mining resources, adding that the government has established a specialised ministry staffed with technical experts to oversee the sector’s expansion.

Analysts say such institutional reforms are aimed at improving governance and attracting foreign investment, which has historically been limited in Algeria’s mining industry compared with other resource-rich countries.

The phosphate project is also closely tied to infrastructure development, particularly the expansion of railway networks in southern and eastern regions to facilitate the transport of raw materials and finished products.

Tebboune described these infrastructure investments as part of a “national vision”, stressing that they were not ad hoc initiatives but rather commitments made during his presidential campaign.

“These projects did not happen by chance,” he said, underlining the government’s intention to follow through on its development pledges.

Industry experts note that integrating mining projects with transport infrastructure is critical to ensuring their commercial viability, particularly in geographically vast countries like Algeria.

By improving connectivity between mining sites, processing facilities and export terminals, authorities hope to reduce logistical costs and enhance competitiveness in international markets.

The global demand for phosphate-based fertilisers is expected to remain strong, driven by population growth and the need to boost agricultural productivity, particularly in developing regions.

If successfully implemented, Algeria’s integrated phosphate project could position the country as a major supplier in this market, competing with established producers in North Africa and beyond.

However, analysts caution that the project’s success will depend on timely execution, adequate financing and the ability to attract partners with the technical expertise required for large-scale mining and processing operations.

Environmental considerations and regulatory frameworks will also play a key role, as governments and investors increasingly prioritise sustainable resource development.

For now, Algerian authorities appear confident that the project will deliver long-term economic benefits, creating jobs, stimulating industrial activity and reducing dependence on hydrocarbons.

As the planned launch date approaches, the phosphoric acid plant stands as a central pillar in Algeria’s efforts to reshape its economic landscape and harness its untapped mineral wealth.

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