Rym Loucif
After more than a decade under Law No.14-05 of 24 February 2014 (“Law 14-05”), Algeria has reshaped its mining regime with the adoption of Law No. 25-12 of 3 August 2025 (the “New Mining Law”), published in the Official Gazette No. 52 on 7 August 2025.
Replacing Law 14-05, the New Mining Law signals a decisive policy shift: opening the sector to capital and technology, reducing administrative bottlenecks, and offering a more transparent and investor-friendly framework for both domestic and foreign operators.
Algeria hosts vast but largely untapped mineral reserves – including iron, phosphates, zinc, and manganese. Yet, mining contributes barely 1% to GDP. Through the modernization of its mining law, the Algerian Government aims to unlock this potential, attract strategic partnerships, and advance its long-standing ambition to diversify an economy still overwhelmingly dependent on hydrocarbons.
- Background of the Publication of the New Mining Law
To fully appreciate the scope of Algeria’s mining reform, it is essential to revisit the architecture of Law 14-05, which governed the sector for over a decade.
Law 14-05 established a dual classification system under which all mineral and fossil deposits fell within either the mines or quarries regime.
The mines regime covered radioactive and metallic minerals – such as uranium, iron, nickel, and manganese – as well as certain non-metallic substances like phosphate and precious materials including gold, silver, and diamonds. Conversely, the quarries regime applied to materials intended primarily for construction or land improvement – such as gypsum, clays, slates, and granite.
Beyond this taxonomy, Law 14-05 introduced the concept of strategic substances, whose exploration and exploitation were reserved to State-owned companies. This effectively excluded private and foreign operators from a significant portion of the mining landscape.
From an investment perspective, Law 14-05 proved restrictive.
Under Law 14-05, mining titles for both exploration and exploitation could only be granted to designated State-owned companies, with foreign investors limited to participating through mining agreements in which the State-owned company retained a minimum 51 % interest. This structure curtailed investors’ ability to secure or capitalize on their discoveries, thereby discouraging early-stage exploration and limiting the inflow of technical expertise and capital.
The New Mining Law departs decisively from this model.
The New Mining Law introduces a series of structural reforms aimed at opening the sector to private initiative while maintaining sovereign control. Among its key innovations – which will be detailed below – are the liberalisation of access to exploration activities, a redefined ownership framework distinguishing between mines and quarries, and the introduction of an inventor’s right ensuring priority in the granting of exploitation permits.
This shift reflects Algeria’s intent to modernize its mining governance, balancing openness to investment with the preservation of sovereign oversight over its natural resources.
- Overview of the New Mining Law
- Main Stakeholders
The main institutions involved in mining activities remain largely unchanged, with adjustments to the distribution of powers between the Minister in charge of mines and the two existing agencies.
The National Agency for Mining Activities (“ANAM”) and the Algerian Geological Survey Agency (“ASGA”), both created under Law 14-05, continue to operate as independent administrative authorities with legal personality and financial autonomy.
The Minister in charge of mines retains overall responsibility for defining and implementing national mining policy. Within this remit, the Minister issues regulatory orders – including the classification of mineral substances and model specifications – grants prior approvals for exploitation permits, and oversees geological heritage protection and international cooperation.
The ASGA is responsible for geological mapping, data management, and the preservation of Algeria’s geological heritage, while the ANAM promotes investment, manages the mining cadastre, grants and supervises permits, and ensures the rational and compliant exploitation of mineral resources.
- Access to Mining Activities and Ownership Rights
The New Mining Law removes the category of strategic substances and dismantles the statutory monopoly that accompanied it.
Most importantly, foreign entities may now directly apply for prospection authorizations and exploration permits without the need for a local entity.
At the exploitation stage, a clear distinction is drawn between mines and quarries:
- Mines must be operated by an Algerian-incorporated company in which foreign investors may hold up to 80% of the share capital, while a minimum non-dilutable 20% equity interest is reserved for a State-owned company. The parties may agree to a higher State participation where economically justified for both sides, and no cap applies to the national stake in the context of competitive tenders.
- Quarries, by contrast, are now subject to a minimum 51% Algerian ownership (either State-owned or private), whereas previously they could be carried out with 100% foreign ownership.
Mining permits and authorizations do not confer any right of ownership over the land or the subsoil upon their holder. The holder of an exploitation mining permit acquires ownership of the mineral substances it extracts, subject to the payment of royalties provided for by the applicable legislation.
Another key innovation lies in the introduction of the inventor’s right. The holder of a mining or quarry exploration permit who discovers a commercially exploitable deposit now enjoys a statutory priority – known as the inventor’s right – entitling them to first claim the corresponding exploitation permit.
This shift reflects Algeria’s intent to modernize its mining governance, balancing openness to investment with the preservation of sovereign oversight over its natural resources.
- Status of the Mining Titles
The New Mining Law brings greater clarity to the legal nature of mining titles in order to enhance their bankability and facilitate financing.
Exploration permits are classified as movable property: they may be assigned or transferred, but cannot be leased (amodiation) or mortgaged.
Exploitation permits, by contrast, may be transferred, leased, or mortgaged with the prior approval of ANAM, provided that mortgages are granted exclusively in favour of Algerian financial institutions and do not extend to in-situ reserves.
Transfers of exploitation permits held by Algerian companies with foreign participation are further subject to a State pre-emption right, reflecting Algeria’s ongoing effort to balance sovereign control with greater openness to private and foreign investment.
- Grant, Term and Renewal of Mining Titles
The New Mining Law simplifies and streamlines the procedure for granting mining titles.
Under Law 14-05, mining projects were subject to a dual approval process under both mining and environmental regulations, often resulting in delays. The New Mining Law replaces this with a unified regime for classified installations, simplifying procedures.
In addition, except for prospecting, all applications are subject to a local administrative inquiry at the wilaya (district) level and a reasoned opinion from the wali.
The granting of any mining title is further conditioned upon the applicant’s adherence to a set of specifications (cahier des charges) outlining the general and specific obligations, including minimum work and expenditure commitments.
Permits are granted by ANAM, with ministerial approval required for mining exploitation titles and, in the case of large integrated projects involving processing or infrastructure development, by the Council of Ministers.
The reform extends the duration of mining rights to enhance investment stability.
Under the Law 14-05, exploration permits were limited to 3 years, renewable once, and exploitation permits were capped at 20 years (for both mines and quarries), with renewals of up to 10 years.
The New Mining Law lengthens these terms considerably: exploration permits are valid for up to 4 years, renewable twice for 2 years each, while exploitation permits may now run for 30 years for mines and 15 years for quarries, renewable for successive periods of 20 years for mines and 10 years for quarries, both as long as reserves permit.
The New Mining Law also introduces the inventor’s right, granting priority to the explorer who discovers a commercially viable deposit, thereby ensuring continuity between exploration and exploitation phases under a simplified and more predictable regime.
- HSE and local content considerations
The New Mining Law reinforces health, safety, and environmental (HSE) obligations, requiring operators to conduct activities in line with international best practices to prevent risks and ensure the conservation and optimal recovery of resources. It establishes a unified regime for classified installations, streamlining environmental approvals through a single system of impact studies and management plans, and strengthens environmental liability under a broad “polluter pays” principle.
In parallel, the New Mining Law introduces local content requirements aimed at deepening national participation in the mining value chain. Operators may be required to supply the domestic market, process part of their production locally, and form partnerships with Algerian entities. Preference must be given to Algerian goods, services, and labour where competitive, with training obligations to develop local skills.
- Transitory Provisions – Existing Permits
Mining permits for exploration and/or exploitation granted under Law 14-05 remain valid until their expiry date but are no longer renewable or extendable.
Holders of such permits may, within 24 months of the publication of the New Mining Law, opt to convert their existing permits into mining permits under the New Mining Law, for the remaining term of the original permit.
From a fiscal perspective, the tax regime established under Law 14-05 continues to apply on a transitional basis until replaced by new provisions to be enacted in the Finance Law. Taxes, royalties, and financial provisions relating to mining activities are thus to be determined by the Finance Law.
Finally, all implementing texts adopted under Law 14-05 remain in force until repealed and replaced by the implementing regulations of the New Mining Law.
- Conclusion: What to Expect Next?
The New Mining Law marks a decisive shift in Algeria’s mining regime, but its effectiveness will ultimately depend on the timely adoption of implementing regulations and their consistent application by ANAM, ASGA, and the regional authorities.
Beyond its legal innovations, the reform’s success will depend on Algeria’s ability to preserve a delicate balance: fostering competitiveness and technological transfer while safeguarding strategic interests and ensuring that resource development delivers lasting economic and social value. If effectively implemented, the New Mining Law could position Algeria as an emerging regional hub for sustainable and integrated mining development.
