MPs Discuss the Partnership With Foreign Investors in Mining Projects

The National People’s Assembly officially approved the new draft regulating mining activity on Monday, following debate and discussions between MPs and government representatives regarding the content of Article 102 of the law.

The consensus ultimately settled on maintaining the national company’s share in the mining project at 20%, with the possibility of increasing or decreasing it if the company decides otherwise. This means that “the door remains relatively open regarding foreign participation in mining investment in Algeria, while preserving national sovereignty.”

The deputies of the lower chamber of Parliament voted by a majority to a slight amendment proposed by the Minister of State, the Minister of Energy, Mines and renewable energies, Mohamed Arkab, to improve the linguistic formulation of Article 102, and include a clarification previously proposed by the Economic Affairs Committee in its supplementary report, where the article included in its final form: “In the event of raising the capital of the legal person mentioned in the above paragraph, the percentage of this contribution can only be reduced if the national institution decided otherwise”.

In this regard, Minister Arkab stated during the session to approve the draft law that the new text protects the country’s natural and mineral resources, enabling economic operators specialising in this activity to exploit these resources under the legal and legislative frameworks that govern their exploitation.

He added, “We witnessed a high patriotic spirit and comprehensive discussions during the MPs’ interventions, reflecting their keen concern for the nation’s interests and the public benefit. Furthermore, the approval of the text is an important step toward structural reform of this strategic sector and a consolidation of the legal and legislative frameworks that support investment, thus enhancing the rational and sustainable exploitation of our mining resources.”

Regarding the controversy sparked by Article 102 of the draft law, which MPs had previously called for during their amendments to limit the national company’s share in mining projects to 20%, instead of allowing foreign companies to acquire more than 80% of exploitation rights, Arkab emphasized that the article had already been clearly explained, both in the supplementary report to the draft law and during the plenary session.

Arkab explained that the new law guarantees the protection of national sovereignty, which constitutes a red line that no one may cross. He added: “All the procedures and measures stipulated by the law fully protect Algerian mineral resources and products.”

Arkab asserted in his response that: “The 20% share does not represent a limit for national companies, but rather a full guarantee for them in mining exploitation by foreign companies conducting exploration, and in all subsequent stages, whether in mining activities or exploration studies.” He said, “All these stages fall under the responsibility of the foreign company. In areas that have not been explored by the state, where there has been no exploration activity by the state, that is, all areas that have not yet been explored, they are granted to foreign companies with advanced technologies to conduct exploration operations.”

He concluded: “After technical and economic studies of these deposits show that they have technical and economic potential and mining efficiency, we will talk about placing these companies under the Algerian legal system. In other words, the national company intervenes within the limits of a 20% guarantee if it is interested in this resource and can negotiate a percentage of 20% or more. If it is not of interest, this percentage will also be negotiated.” He added: “We seek to protect national companies and this clause clarifies how to deal with foreign investors, as we work to protect national sovereignty, which is a red line that cannot be crossed.”