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The new law governing mining activities in Algeria has been published in The Official Journal N ° 52. Signed on August 3 by the President of the Republic, Abdelmadjid Tebboune, it aims to make the mining sector more attractive for investors and to strengthen transparency, thanks to a set of incentives and provisions promoting investment.
This text is part of the reforms aimed at strengthening economic sovereignty, supporting the diversification of the national economy, creating direct and indirect jobs as well as encouraging the development of small and medium -sized enterprises (SMEs).
Law 25-12 governing mining activities, the fruit of a large concertation of three years with various players, was adopted by the deputies of the National People’s Assembly (APN) on June 16 and by the members of the Council of the Nation on July 8.
Qualified as “qualitative advance” by the Minister of State, Minister of Energy, Mines and Renewable Energies, Mohamed Arkab, the text consecrates the principle of sovereignty on national resources, as well as it encourages rational and lasting exploitation of deposits. It also brings new impetus to balanced development efforts through the creation of wealth and jobs throughout the territory.
During the presentation of the text, Mr. Arkab had praised “the spirit of national responsibility” which marked the debates, and reaffirmed the commitment of his sector to apply the law optimally, based on a participative and transparent approach, in accordance with the strategic guidelines of the State in matters of good governance.
In this sense, the Minister had highlighted article 102, which supervises cooperation between the public and private sectors in the deposits not yet explored or financed by the State. It provides for a minimum participation of 20 % for a national company (or its subsidiaries fully owned by the State) in the capital of any company of Algerian law partially or completely held by foreign investors requesting an operating authorization.
Thus, unexploited areas can be entrusted to foreign companies with advanced technologies, with a view to creating an Algerian mixed company if the viability of the deposits is confirmed. The deposits already discovered within the framework of the National Exploration Program are not affected.
In order to protect national interests, an amendment prohibits any reduction in public participation during a capital increase, unless the national company is otherwise decision. The parties can nevertheless agree with a rate above 20 % if economic interest justifies it. According to the Minister, this provision reduces the risk of use of international arbitration and promotes cooperation with operators capable of fully enhancing the mining potential.
In its report, the specialized commission recommended that it shorten the processing of permit requests, to remove bureaucratic obstacles, to digitize deposit and monitoring procedures, and to strengthen transparency and competition between investors. It also insisted on the importance of improving the transport networks of mining products, developing local skills through training, and promoting scientific research in terms of environmentally friendly mining.