Mining industry of Algeria
Algeria’s mining is dominated by hydrocarbons (oil and gas). The country also produces various metals and industrial minerals, but at smaller, modest levels.
In 2006, Algeria produced about 13% of the world’s helium. Its oil and gas output accounted for about 2.9% of world natural gas and 2.2% of world crude oil. Algeria also held large shares of global resources: about 21% of identified helium resources, 2.5% of natural gas reserves, and about 1% of crude oil reserves.
By 2019, Algeria was the 17th largest producer of gypsum and the 19th largest producer of phosphate. Minerals such as high‑grade iron ore, phosphate, mercury, and zinc have been exported since the early 1970s.
The state runs mining through the National Company for Mineral Research and Exploration (Société Nationale de Recherches et d’Exploitation Minières), created in 1967. In 1983 it was restructured into separate units: Ferphos (iron ore and phosphate) with production units and a port at Annaba, and Erem for mineral research at Boumerdès and Tamanrasset. The Ministry of Energy and Mines oversees the mineral industry, with agencies like the National Agency for Mining Endowment (ANPM). Processed minerals such as cement, fertilizers, and steel are handled by the Ministry of Industry and Restructuring.
Laws regulate mining and hydrocarbons: nonfuel minerals law (01-10) adopted in 2001, hydrocarbon law (05-07) in 2005, and environmental laws (03-10) in 2003 and (05-12) in 2005.
In 2006, revenue from natural gas and petroleum made up about 78% of government income, and the hydrocarbon sector accounted for more than one‑third of the GDP. Export value rose with higher crude oil and natural gas prices, with most exports going through eight main ports or by pipeline. Total exports in 2006 were about $57.3 billion, with hydrocarbons making up about $53.6 billion; other mineral exports were much smaller.
About 28,000 people worked in mining in 2006; roughly half worked in the private sector. Most mining jobs were in aggregates (construction materials), clay, and sand. Public and private enterprises dominated larger mining sectors like barite, bentonite, cement, natural gas, petroleum, and phosphate rock.
Notable production changes in 2006 included increases in aggregates, barite, cement, dolomite, feldspar, iron ore, phosphate rock, salt, construction sand, and steel. Productions of ammonia, gold, gypsum, helium, pozzolan, quartzite, silica sand, silver, and zinc fell that year. There were about 950 active nonfuel mineral operations, with private firms leading in aggregates, clay, gypsum, and sand, while public firms dominated barite, bentonite, cement, natural gas, petroleum, and phosphate rock. Private–public joint ventures played a major role in gold, helium, and steel production.
In late 2006, the government offered to sell majority interests in several ENOF subsidiaries. ENOF closed the Chabet El Hamra zinc mine and the Djebel Debbagh kaolin pit. About 300 exploration permits were in effect. Notable explorations included deals with China for the Boukaïs copper prospect and several lead–zinc, zinc, manganese, and gold prospects. The Western Mediterranean Zinc joint venture acquired rights to the Oued Amizour zinc project.
The Tirek mine (ENOR) produced about 38,914 tonnes of ore in 2006, down from 65,718 tonnes in 2005 due to delayed equipment. Development continued at the Amesmessa and other mines. Some exploration results (like Tan Chaffao) were below expectations, so companies reevaluated continued work. Western Mediterranean Zinc began drilling at Tala Hamza near Béjaïa.
A helium plant at the GL1K LNG facility in Skikda produced its first liquid helium in 2006, though capacity was limited by earlier damage from a 2004 explosion. A plan to add a new LNG train in 2007 aimed to restore full capacity.
Algeria is home to large oil and gas fields such as Hassi R'Mel and Hassi Messaoud. Higher oil and gas prices encouraged more exploration and development drilling in 2006 (77 exploration wells and 208 development wells). Because of Europe’s demand and favorable geography, pipelines and export routes were expanded and planned. The government expected to keep attracting foreign investment and to increase oil production and natural gas exports by 2010, while respecting OPEC quotas.
This page was last edited on 2 February 2026, at 01:58 (CET).