Algeria Allows Foreign Investors to Own 80% of Mining Projects
Algeria has recently made a significant move by passing legislation that permits foreign investors to own up to 80% of mining projects in the country. This groundbreaking decision is a major step towards diversifying the economy of the oil-rich nation. The new law requires companies to acquire a single mining permit, which is valid for up to 30 years and covers both exploration and extraction of minerals.
The primary goal of this new legislation is to simplify the investment process, attract private capital, and boost domestic production of essential minerals such as phosphate, iron ore, and zinc. Algeria, heavily reliant on hydrocarbons for over 75% of its exports and half of its state revenue, is looking to establish stability in the face of fluctuating energy prices. With the economy of the North African country expected to grow by 3.5% this year, the International Monetary Fund is advocating for the exploration of alternative revenue sources.
Source: Bloomberg
