Algerian and Chinese Firms Confirm Phosphate Mining Deal in Algeria

A US$7 billion joint venture to develop and exploit phosphate deposits confirmed.

By Chriselle Moraes on
19th June 2022

Four Algerian and Chinese firms have signed a US$7-billion deal to develop an integrated phosphate project in Algeria in Bled El Hadba, Djebel Onk, and Tebessa. 

The agreement took place at a shareholders’ signing ceremony. The firms Manal and Asmidal, a subsidiary of Sonatrach, represented Algeria while Wuhuan Engineering and Tian’An Chemical signed for the Chinese side. 

Wuhuan Engineering Co., Ltd. is an international engineering company that handles engineering procurement and construction (EPC) projects. TianAn Chemical Industry Co. Ltd. manufactures and distributes diversified chemical products.

The deal is expected to create the Algerian Chinese Fertilizers Company (ACFC), for the smooth operation of the project. The joint-stock company will be created under Algerian law. The Algerian firms hold a 56% stake while the Chinese own the remaining 44%. 

The project, poised to be the country’s first in mining and fertilizer production, will involve the processing of phosphates into fertilizer and include developing facilities at the Annaba Port. The expected fertilizer production capacity will be 5.4 million tons per annum (Mtpa). 

“The project will include the development and exploitation of the phosphate deposit of Bled El Hadba, Djebel Onk, Tébessa, the chemical transformation of phosphates in Oued Kébérit, Souk Ahras, the manufacture of fertilizers in Hadjar Soud, Skikda, as well as dedicated port facilities at the port of Annaba,” Sonatarch said.

The venture is expected to create 12,000 construction jobs in Algeria. That is in addition to 6,000 direct and 24,000 indirect jobs created in the operating phase. The deal follows a previous US$6 billion deal between Sonatrach and Chinese Citic to mine the phosphate plant in Tebessa.

Top Photo: Industrial phosphate mine processing facility - Stock Image (Pix569 | Dreamstime)

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