The Algerian Government faces 12 challenges to start investing in the mining sector and extract the accumulated wealth lying in the ground, which are the files on the table of the new minister of mines in the wake the recent government reshuffle, by notably updating mining maps to estimate the country’s wealth, make inventory reserves, amend the mining law and sell manufactured or semi-manufactured products by banning the sale of this natural wealth in the form of raw materials, at a time when experts are certain that Chinese companies will be closest to entering the Algerian market and investing in this vital sector of activity.
Energy expert Bouziane Mahama said in a statement to “Echorouk” that the exploitation of these mining resources imposes 12 conditions, that is, updating the mining maps to confirm estimates and the size of these riches and proving indicators streamlining important reserves of strategic and rare resources in basic soils, as it is assumed before the exploitation of these mines, to conduct extensive exploratory activity to confirm these estimates.
The second condition is the challenge of reducing the cost to produce one ton of these various mining resources.
The third condition in providing transportation to these important mines, which are often deep in the desert and remote areas, and therefore we need a network of railways and electric trains to be able to exploit them.
The fourth condition is the challenge of industrialization by producing and manufacturing manufactured and semi-manufactured materials and avoiding being sold as raw materials, and the fifth condition is energy, as extractive activity in the world as a whole and this requires enormous amounts of energy, because mining activity is universally categorized as a voracious energy activity, so energies must be replaced by renewables, especially solar, photovoltaic, and thermal energy in mining locations and regions.
The sixth condition is water, as it is universally known that mining activity requires large amounts of water in extraction and refinement activity.
The seventh condition is the qualified, experienced and skilled workforce, especially since mining activity has witnessed in the previous decade a dearth of competencies, notably engineers and technicians due to instability of the mining sector and its affiliation with different ministries in many times, so the mining sector remained in the shadows or as a secondary sector attached to energy or industry, which required serious thinking today about updating the laws to ensure a wide employment of engineers and technicians and intensifying training so that they can take up the challenge and accompany the ambitious national project to develop mining wealth.
The eighth condition is the updating of the mining law, which has proved useless in attracting promising foreign investment while the ninth condition lies in the competitiveness for the African Mines Course, where emphasis should be placed on the elements of Algeria’s geographical preference to break the monopoly of African countries.
The tenth condition, from an important perspective, is to strike a balance between bringing in foreign investments that will provide financing, high-level technologies, expertise, with on focus the problem of integrating of local content from companies, institutions, study offices and expertise in mining activity, while recalling that globally every company that invests in mining activity must have a business turnover of at least $ 5 billion dollars.
The 11th condition is the environmental challenge, because it is universally known that mining activity is the most influential in the environment. The 12th condition is for its part is to restructure the mining sector and its active tools, as our interlocutor put it.
This confirms the domain’s importance, when reviewing these challenges, as the Chinese and Australian companies will be at the forefront of the companies that have the advantage of being present in the Algerian mining sector.