✏️ BY: Dr. Hana Saada
ALGIERS, ALGERIA | May 26, 2024 — Algeria is embarking on a transformative journey to optimize the value of its mineral and hydrocarbon resources through localized processing, with the dual objectives of bolstering export revenues and satisfying domestic demands.
Under the guidance of the Ministry of Energy and Mines, the government has crafted a comprehensive national strategy to cultivate the processing industry for various products, particularly minerals. This strategy delineates clear and attainable objectives, harnessing the nation’s industrial capabilities and abundant primary resources.
According to Miloud Medjelled, Director of Economic Studies and Prospective at the Ministry of Energy and Mines, Algeria aims to achieve a short-term transformation target of 50% for hydrocarbon and mineral products by 2028. In the long term, the nation aspires to achieve an impressive 80% transformation rate.
Transitioning away from the exportation of raw materials such as zinc, lead, iron, phosphate, and petroleum products, Algeria is poised to augment their value and optimize profitability, in accordance with directives from the Head of State. Over the past two years, the Ministry of Energy has diligently undertaken the mapping of the nation’s exploitable mineral deposits as part of an extensive research and exploration program. This initiative is designed to furnish the requisite mineral resources to underpin the development of mineral processing industries, which presently stands at approximately 30%, according to ministry figures.
In the domain of hydrocarbon production, Algeria has set a target to achieve 250 million tons of oil equivalent (Tep) by 2040. This ambitious objective will catalyze the transformation of petroleum products, aligning with the government’s overarching goal to bolster primary production by 2% annually.
Transformation of Petroleum Products
Sonatrach, the national oil company, has made substantial investments in refining and petrochemical sectors as part of its strategic roadmap leading up to 2030. This blueprint seeks to diversify its investment portfolio by expanding activities into the transformation sector.
Algeria’s refining capacity has been fortified through the establishment of five refineries nationwide, boasting a cumulative capacity exceeding 25 million tons per year (MTA). Prominent refineries include Skikda (RA1K), Hassi Messaoud (RHM), Adrar (RA1D), Algiers (RA1G), and Arzew (RA1Z). This augmented refining capacity has enabled Algeria to attain self-sufficiency in fuel production.
In the realm of petrochemicals, Algeria has prioritized ventures such as polypropylene production and the construction of a methyl tert-butyl ether (MTBE) production unit. Furthermore, a large-scale integrated phosphate production project is underway, positioning the nation as a key exporter of fertilizers regionally and globally. The government aims to transform over 50% of the initial production, up from the current 32%, through its petrochemical development strategy.
Valorization of Mineral Products
Algeria endeavors to fully capitalize on its mineral sector by processing and refining metals sourced from iron ores to bolster the domestic steel industry and capitalize on burgeoning global demand for exports.
Projects such as the Gara Djebilet iron ore mine in Tindouf, featuring a pre-processing unit with a capacity of 4 million tons per year, are underway and slated for completion by 2025. Additionally, a zinc concentrate processing facility in the Béchar industrial zone is set to commence operations by 2026 through a collaborative effort between Feraal and Tosyali.
The Béjaïa zinc and lead mine, boasting reserves estimated at 34 million tons and a production capacity of 2 million tons per year, will also witness the installation of a zinc concentrate processing plant in the new El-Kseur industrial zone.
In summary, industry experts emphasize that the transformation of energy products has the potential to amplify their value manifold, underscoring Algeria’s strategic emphasis on localized processing to unlock economic potential and foster sustainable growth.
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