Law No. 25-12 of August 3, 2025 marks a major evolution in the legal framework of the Algerian
mining sector.
It directly opens prospecting and exploration to foreign investors, establishes a right of priority for the
holder of an exploration permit in the event of the discovery of a commercially exploitable deposit, and
authorises foreign participation of up to 80% in companies operating mines, subject to a minimum
participation of 20% held by an Algerian public company.
In the below article, first published by Legalcommunity MENA, Rym Loucif, Founding Partner of Loucif
- Co, an Algerian independent boutique law firm specialising in Energy matters and member of LEX
Africa, analyses the search for a new balance between the attractiveness of the sector, the
development of strategic partnerships and the preservation of state sovereignty over natural
resources.
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, which is 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
Moreover, from an investment perspective, Law 14-05 proved restrictive even for substances that
were not strategic substances.
Under Law 14-05, mining titles for both exploration and exploitation (irrespective of the mineral
involved) 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 still maintaining sovereign control. Among its key innovations – which will be detailed
below – are the liberalisation of access to exploration activities, a redefined ownership framework
(retaining the distinction between mines and quarries), and the introduction of a discoverer of a
mineral deposit’s right to 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
2.1. 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.
Algeria’s principal state-owned mining company is Sonarem, an operating industrial group active
through specialised subsidiaries. By way of non-exhaustive illustration, FERAAL (National Company
for Iron & Steel), 100% owned by Sonarem, is a Sonarem operating subsidiary in the iron and steel
segment and is mandated, inter alia, to develop the Gara Djebilet iron ore value chain. In the
precious-metals segment, ENOR (Gold Mines Operating Company) is Sonarem’s dedicated gold-
mining subsidiary and is tasked, inter alia, with the exploitation of the Tirek and Amesmessa
deposits. Accordingly, a foreign investor may have more than one potential state-linked JV
counterparty, either Sonarem at group level or the relevant operating subsidiary/project vehicle,
depending on the commodity and the project structure (e.g., FERAAL for iron ore; ENOR for gold).
2.2. 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.
A key innovation lies in the introduction of the exploration company’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 discoverer’s right – entitling them to first claim the corresponding
exploitation permit, subject to required Algerian participation requirements. In the case of a mine (as
opposed to a quarry), the foreign-owned discoverer has the first right to enter into a joint venture
with the state-owned mining company (in which the latter must hold at least a 20% interest 1 ). In the
case of a quarry, a foreign discoverer must find an Algerian partner to hold a 51% interest.
2.3. Access to Mining Activities and Ownership Rights
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.
2.4. 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 (i.e. a state-appointed provincial
governor).
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 permits 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.
2.5. Access to Mining Activities and Ownership Rights
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.
1 Article 101 of the New Mining Law characterises the State’s participation as an interest in the share
capital of the project company (i.e., an equity stake) and does not expressly provide for a statutory
“free carry”. The law does not prescribe the mechanics for funding that stake (including whether it is
to be subscribed in cash or in kind, the timing of any subscription, or any contractual carried
arrangements), which will typically be dealt with in the transaction documentation.
For more information and updates contact Rym Loucif, Loucif + Co on rloucif@loucif-law.com,
Telephone: (DZ) + 213 7 70 07 21 16 / + 213 5 52 58 28 93, (FR) + 33 6 29 27 13 34 or visit
www.loucif-law.com.
