Minister Arkab: Algeria Embarks on a Comprehensive Overhaul of Its Mining Law to Boost Investment

BY: Dr. Hana Saada

Algiers, Algeria | February 6th, 2025 — Algeria is undertaking a far-reaching revision of its mining legislation to enhance the sector’s attractiveness for investors and optimize resource exploitation. The announcement was made by Mohamed Arkab, Minister of State, Minister of Energy, Mines, and Renewable Energies, during a plenary session at the People’s National Assembly devoted to oral questions. The minister underscored that this comprehensive overhaul aims to modernize the legal framework, simplify administrative procedures, ensure transparency, and provide greater incentives for investment while upholding international environmental standards.

A Transparent and Inclusive Reform Process

Arkab emphasized that the revision process follows a participatory and inclusive approach, incorporating inputs from all relevant stakeholders. “The draft law has been prepared after extensive consultations with all concerned parties and will soon be submitted to the Council of Ministers before being presented to both chambers of Parliament for approval,” he stated. This initiative aligns with Algeria’s broader strategy to revitalize the mining industry as a pillar of economic growth, diversification, and job creation.

Strengthening Artisanal Gold Mining Oversight

Addressing concerns regarding the regulation of artisanal gold mining, particularly in the country’s southern regions, the minister highlighted its strategic importance for local economic development and youth employment. He revealed that since the program’s launch in 2021, a total of 223 artisanal mining licenses have been granted, accompanied by dedicated training programs and technical support. The government has placed strong emphasis on regulatory oversight, ensuring compliance with safety, health, and environmental standards.

“The Ministry of Energy and Mines, through the National Agency for Mining Activities and the Mining Police engineers, enforces strict controls to guarantee adherence to operational guidelines,” Arkab affirmed. He disclosed that since 2021, authorities have conducted 1,826 inspection operations on artisanal gold mining sites. These audits uncovered multiple violations of contractual obligations, leading to seven license withdrawals and the freezing of 30 others.

Expansion of Gold Processing Infrastructure

To streamline artisanal mining operations and prevent illicit trade, the government has established three specialized centers for processing and purchasing raw gold ore in Felahleh (Djanet) and Amesmessa (In Guezzam), with a third facility set to become operational in Abalessa (Tamanrasset) by the end of 2024. Furthermore, the state-owned gold refinery, ENOR, is accelerating payments to artisanal miners for refined gold, ensuring a steady revenue stream and formalizing the sector.

Impressive Gold Production and Future Prospects

Providing an update on gold mining production, the minister disclosed that 61,331 tonnes of gold ore have been extracted, with ENOR producing 339 kilograms of raw gold. To further stimulate investment in the gold sector, the National Agency for Mining Activities launched nine exploration tenders in 2022, drawing significant interest from domestic firms. Six exploration sites have already been allocated, with two more set to commence operations soon. Additionally, a new batch of sites will be put up for auction in 2025.

“The development of both artisanal and industrial gold mining is part of a broader strategy to stimulate local economies, generate employment, and reinforce Algeria’s mining sovereignty while ensuring a rigorous regulatory framework and combating illegal practices,” Arkab asserted.

Crackdown on Illegal Gold Mining and Smuggling

The Algerian government has ramped up efforts to combat illicit gold mining and smuggling. “In collaboration with the National People’s Army, the National Gendarmerie, and other security services, multiple operations have been conducted, leading to the recovery of 8,455 tonnes of illegally mined gold ore by the end of 2024,” the minister revealed. These crackdowns have resulted in the arrest of numerous traffickers from various nationalities and the seizure of vehicles, prospecting equipment, including metal detectors, jackhammers, electric generators, and hydraulic pumps.

Energy and Infrastructure Development in the South

Beyond mining, Arkab addressed broader economic concerns, including employment and infrastructure development in Algeria’s southern regions. He assured that Sonatrach remains committed to expanding recruitment efforts to support job creation. On energy access, he reported substantial progress in electrifying agricultural zones, with over 70,000 agricultural perimeters now connected to the national electricity grid.

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