Algeria is witnessing a renewed surge of interest in its vast phosphate reserves as Chinese construction giant CITIC signals a strategic comeback in the country’s mining sector.
During high-level talks with Belkacem Soltani, CEO of national mining company Sonarem, CITIC expressed strong interest in contributing to the transformation of Algeria’s phosphate industry.
The discussions come amid a sweeping overhaul of Algeria’s mining framework, driven by the enactment of a new mining law designed to attract global investors with advanced technical capacity.
The reforms introduce a more transparent legal environment, simplified procedures, and incentives aimed at aligning foreign investment with the nation’s economic diversification goals.
Although CITIC has a decades-long history in Algerian infrastructure—most notably with the East-West Highway—the company was notably absent from the massive Bled El Hadba phosphate megaproject in Tébessa, which launched in 2024.
Initially conceived as an Algerian-Chinese venture, the project changed course due to bureaucratic delays, with management handed over exclusively to domestic giants Sonatrach and Sonarem.
Despite this, CITIC is now aiming for a renewed role as Algeria accelerates plans to scale up phosphate production.
The Tébessa site, estimated to hold over 3 billion tonnes of reserves, forms the backbone of a broader $7 billion industrial programme spanning extraction, processing, and logistics.
By 2031, the project targets an output of 10.5 million tonnes of raw phosphate and 6 million tonnes of fertilizers annually, with 21 facilities across Souk Ahras, Skikda, and Annaba, including a mineral port in Annaba.
Algerian Minister of Energy and Mines Mohamed Arkab has championed local capacity building and timely execution, stressing that the phosphate sector is vital not only to the country’s economy but also to its geostrategic positioning in global agricultural supply chains.
While the Tébessa contract is now under national control, CITIC’s new bid for relevance hinges on its broader mining expertise and investment capabilities.
Talks with Sonarem covered a wide scope—iron, copper, zinc, and marble—but phosphate remained the focal point, reflecting Beijing’s growing interest in securing critical raw materials amid rising global competition.
The landscape for such partnerships, however, has shifted. Algeria’s new mining code mandates not only capital but also technology transfer and local value creation.
For companies like CITIC, participation will now require deeper integration into Algeria’s industrial fabric and a firm commitment to national development priorities.
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