Allows greater foreign participation in exploration and mining projects
07 Aug 2025
On 3 August 2025, Algeria adopted Law No. 25-12 governing mining activities, which introduced several key changes to the legal framework. In particular:
- In the exploration phase, it allows foreign entities to directly apply for and obtain prospection authorizations and exploration permits.
- In the exploitation phase, it introduces a distinction between mines and quarries. For mines, exploitation permits must be held by an Algerian company; however, foreign investors may own up to 80 per cent of the company’s share capital, with a minimum of 20 per cent held by a State-owned entity. Further dilution of the State’s stake following a capital increase may be negotiated with the relevant State-owned entity. For quarries, exploitation permits must also be held by an Algerian company, but foreign ownership is capped at 49 per cent, with a State-owned entity retaining at least 51 per cent.
Under the previous framework, mining titles for exploration or exploitation of mines were granted exclusively to a State-owned entity designated by the type of mineral, and foreign participation was only possible through a mining agreement with that entity, which was required to hold a minimum 51 per cent interest.
The law was published in the Official Gazette on 7 August 2025.
Nature of measure:
Type:
-
Entry and establishment (Ownership and control)
Industry:
-
Primary (Mining and quarrying)
Inward FDI:
Yes
Outward FDI:
No
Sources:
