mining industry of algeria

8/15/2019 Mining Industry of Algeria

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Mining industry of Algeria

Hydrocarbons are the leading sector in Algeria’s min-eral industry, which includes diverse but modest pro-duction of metals and industrial minerals. In 2006,helium production in Algeria accounted for about 13%of total world output. Hydrocarbons produced in Alge-ria accounted for about 2.9% of total world natural gasoutput and about 2.2% of total world crude oil output in2006. Algeria held about 21% of total world identifiedresources of helium, 2.5% of total world natural gas re-serves, and about 1% of total world crude oil reserves.[1]

1 History

Some minerals, such as high-grade iron ore, phosphate,mercury, and zinc, have been exported since the early1970s. The state mining and prospecting corporation, theNational Company for Mineral Research and Exploration(Société Nationale de Recherches et d'ExploitationsMinières), was established in 1967. As a result of thegovernment’s decentralization policy, the company wasrestructured in 1983 into separate production and dis-

tribution entities. The most important of these werean iron ore and phosphate company known as Ferphos,which had three production units and a port complex atAnnaba, and another company called Erem that special-ized in conducting mineral research at Boumerdas, on theMediterranean Sea, and Tamanrasset in the south.[2]

In 2000, the government proposed allowing foreign in-vestors to develop mineral deposits held by the nationalmining companies. The national geologic and mineral re-search office has identified many mineral deposits. How-ever, they were located in remote areas that lacked infras-tructure or government funding for development. With

Algeria’s proximity to Europe, its major minerals cus-tomer , the country’s base and precious metals are of in-terest to foreign investors. Guerrilla activity, though, re-mains a significant deterrent.

2 Legal framework

The mineral industry is managed primarily by the Min-istère de l’Énergie et des Mines (Ministry of Energyand Mines) and subsidiary organizations, such as theAgence Nationale du Patrimoine Minier (ANPM) (Na-

tional Agency for Mining Endowment). Processedmineral commodities, such as cement, fertilizers, andsteel, are under the jurisdiction of the Ministère de

l’Industrie et de la Restructuration (Ministry of Industryand Restructuring).[1]

Nonfuel mineral operations were regulated by law No.01-10 of July 3, 2001, and associated decrees. Naturalgas and petroleum operations were regulated by law No.05-07 of April 28, 2005. Environmental laws applicableto the mineral industry included law No. 03-10 of July19, 2003, and associated decrees, and law No. 05-12 ofSeptember 4, 2005.[1]

3 Economic impact

Revenue attributed to natural gas and petroleum produc-tion, processing, and sales activity accounted for 78%of Government income. Hydrocarbon activity accountedfor more than 33% of the nation’s gross domestic product(GDP). The continued increase of international crude oiland natural gas prices resulted in a significant increasein the value of Algerian exports, most of which wereshipped through the country’s eight main seaports or ex-

ported by pipeline. In 2006, Algerian exports of goodsand services were valued at $57.3 billion, of which hy-drocarbons accounted for about $53.6 billion, comparedwith 2005, when exports of goods and services were val-uedat $48.8 billion, of which hydrocarbons accounted forabout $45.6 billion.[3] Other mineral commodity exportsincluded base metals (about $206 million), iron and steel($197 million), industrial minerals (about $52 million),and precious minerals (about $4 million).[1]

About 28,000 people were employed in the mining sec-tor, of which slightly less than one-half was in the pri-vate sector. Aggregate and stone production companies

accounted for more than 60% of the mining sector work-force; clay production companies, 12%; phosphate pro-duction companies, 6%; and iron ore production compa-nies, 5%.[1]

4 Production

Several significant changes in production were postedin 2006. Mineral commodities with notable productionincreases included aggregate and crushed stone, barite,cement, dolomite, feldspar, iron ore, phosphate rock, salt,

construction sand, and steel. Mineral commodities withnotable production decreases included ammonia, gold,gypsum, helium, pozzolan, quartzite, silica sand, silver,

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https://en.wikipedia.org/wiki/Silverhttps://en.wikipedia.org/wiki/Silicahttps://en.wikipedia.org/wiki/Quartzitehttps://en.wikipedia.org/wiki/Pozzolanhttps://en.wikipedia.org/wiki/Heliumhttps://en.wikipedia.org/wiki/Gypsumhttps://en.wikipedia.org/wiki/Goldhttps://en.wikipedia.org/wiki/Ammoniahttps://en.wikipedia.org/wiki/Steelhttps://en.wikipedia.org/wiki/Construction_materialshttps://en.wikipedia.org/wiki/Salthttps://en.wikipedia.org/wiki/Phosphate_rockhttps://en.wikipedia.org/wiki/Iron_orehttps://en.wikipedia.org/wiki/Feldsparhttps://en.wikipedia.org/wiki/Dolomitehttps://en.wikipedia.org/wiki/Cementhttps://en.wikipedia.org/wiki/Baritehttps://en.wikipedia.org/wiki/Construction_aggregatehttps://en.wikipedia.org/wiki/Pipeline_transporthttps://en.wikipedia.org/wiki/Petroleumhttps://en.wikipedia.org/wiki/Natural_gashttps://en.wikipedia.org/wiki/Guerrilla_warfarehttps://en.wikipedia.org/wiki/Europehttps://en.wikipedia.org/wiki/Mediterranean_Seahttps://en.wikipedia.org/wiki/National_Company_for_Mineral_Research_and_Explorationhttps://en.wikipedia.org/wiki/Zinchttps://en.wikipedia.org/wiki/Mercury_(element)https://en.wikipedia.org/wiki/Phosphatehttps://en.wikipedia.org/wiki/Iron_orehttps://en.wikipedia.org/wiki/Algeriahttps://en.wikipedia.org/wiki/Heliumhttps://en.wikipedia.org/wiki/Industrial_mineralshttps://en.wikipedia.org/wiki/Algeriahttps://en.wikipedia.org/wiki/Hydrocarbon


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2 6 COMMODITIES

and zinc.[1]

5 Structure of the mineral industry

About 950 nonfuel mineral operations were active in Al-geria in 2006, of which nearly 70% were aggregates,construction sand, or crushed stone operations. Private-sector companies dominated the aggregate, commonclay, gypsum, and sand sectors. Large- and medium-sized public-sector enterprises dominated the ranks ofbarite, bentonite, cement, natural gas, petroleum, andphosphate rock producers. The joint ventures of privateand state-owned companies dominated the gold produc-tion sector, the helium production sector (Helios s.p.a.),and the steel production sector (Mittal Steel Annaba

s.p.a.).[1]

In late 2006, the government offered to sell its majorityinterests in Société des Mines de Baryte d’Algérie s.p.a.,Société des Diatomites d’Algérie s.p.a., and Société desFeldspaths d’Algérie s.p.a. [all of which were subsidiariesof state-owned Entreprise Nationale des Produits MiniersNon Ferreux & des Substances Utiles, s.p.a. (ENOF)]. In2006, ENOF closed the Chabet El Hamra zinc mine, andSociété des Kaolins d’Algérie s.p.a. (which was an ENOFsubsidiary) closed the Djebel Debbagh kaolin pit.[1]

6 Commodities

In 2006, about 300 exploration permits were in ef-fect. Notable exploration and development and redevel-opment contracts under negotiation included those withsubsidiaries of the Mineral Resources Management Bu-reau of Henan Province, China for the Boukais copperprospect, the Boukhedma-Aïn Sedjra-Kef Semmah leadzinc prospects, the El Abed zinc prospect, the Guet-tara manganese prospect, and the Issefane gold prospect.Western Mediterranean Zinc s.p.a., which was a joint

venture of Terramin Australia Ltd. (65% interest) andENOF (35% interest), acquired the rights to explore theOued Amizour zinc project.[1]

6.1 Gold

ENOR produced 38,914 metric tons (t) of ore with anaverage grade of 9.57 grams per metric ton gold from theTirek Mine in 2006, which was significantly less than the65,718 t of ore that the company mined in 2005. The

decline was attributed to the delayed delivery of equip-ment. Development of the Amesmessa Mine continued;production was expected to begin in 2007.[1]

6.2 Lead, Silver, and Zinc

Assays of samples from a 5-hole drilling program atthe Tan Chaffao deposit by Tan Chaffao Mining Co.S.A.R.L., which was a joint venture of Maghreb Miner-als PLC of the United Kingdom (85% interest) and Gold

and Industrial Minerals [GOLDIM] [which was a sub-sidiary of the Government-owned Office National de laRecherche Géologique et Minière (15%)] indicated lessthan expected mineralization. At yearend, the joint ven-ture was reevaluating whether to continue exploration ofthe isolated Tan Chaffao deposit, which is located about250 kilometers (km) northwest of Tamanrasset.[1]

In late 2006, Western Mediterranean Zinc began adrilling program on the Tala Hamza deposit of the OuedAmizour zinc project. Tala Hamza was located about 12km southwest of the Port of Bejaia.[1]

6.3 Helium and Liquefied Natural Gas

In 2006, the testing of the Helison Production s.p.a. plantlocated at the GL1K liquefied natural gas (LNG) facil-ity in Skikda resulted in the plant’s initial liquid heliumproduction. Designed with a nominal production capac-ity of 16 million cubic meters per year of liquid he-lium, the plant capacity would be restricted to 8 mil-lion cubic meters per year because of an explosion andfire that destroyed three LNG trains at Skikda in 2004.The construction of a 4.5-million-metric-ton-per-year-

capacity LNG train at the GL1K facility (to replace thedestroyed LNG trains) was expected to begin in 2007.[1]

6.4 Petroleum and Natural Gas

Map of Algeria showing pipelines

Giant petroleum fields include the Hassi R'Mel gas fieldand the Hassi Messaoud oil field.[4] High international

https://en.wikipedia.org/wiki/Hassi_Messaoudhttps://en.wikipedia.org/wiki/Hassi_R%2527Melhttps://en.wikipedia.org/wiki/Skikdahttps://en.wikipedia.org/wiki/Bejaiahttps://en.wikipedia.org/wiki/United_Kingdomhttps://en.wikipedia.org/wiki/Goldhttps://en.wikipedia.org/wiki/Terramin_Australia_Ltdhttps://en.wikipedia.org/wiki/Private-sectorhttps://en.wikipedia.org/wiki/Private-sectorhttps://en.wikipedia.org/wiki/Construction_sandhttps://en.wikipedia.org/wiki/Construction_aggregatehttps://en.wikipedia.org/wiki/Zinc


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crude oil and natural gas prices encouraged stepped-upexploration and development drilling in Algeria. Thenumber of exploration wells drilled in 2006 increased to77 compared with 64 in 2005 and 36 in 2001. The num-ber of development wells drilled in 2006 increased to 208compared with 161 in 2005 and 175 in 2001.[1]

Existing and expected local and European high demandfor oil and gas has resulted in the construction and plan-ning of a number of pipelines in Algeria: [5]

6.4.1 Oil Pipelines

• Beni Mansour to Algiers

• Haoud El Hamra to Bejaia

• Haoud El Hamra to Skikda

• Haoud El Hamra to Arzew• In Amenas to Haoud El Hamra

• Rhourde El Bagel to Haoud El Hamra

• Trapsa oil Pipeline from Zarzaitine/Edjeleh to LaSkhirra in Tunisia

• El Borma to La Skhirra in Tunisia

6.4.2 Gas Pipelines

• Algiers to Arzew• Annaba to Skikda

• Bejaia to Skikda

• Haoud El Hamra to Arzew

• Hassi Messaoud to Has si R'Mel

• Has si R'Mel to Skikda

• Has si R'Mel to Algiers

• Has si R'Mel to Arzew

• In Amenas to Hassi Messaoud

• In Salah to Has si R'Mel

• Part of Algeria-Italy Gas Pipeline via Sardinia fromHas si R'Mel field to El Kala

• Maghreb–Europe Gas Pipeline from Has si R'Melto Tarifa in Spain

• Medgaz from Beni Saf to Almeria in Spain

• El Borma to Gabes in Tunisia

• Trans-Mediterranean Pipeline, from Has si R'Mel toBologna, Italy, transiting through Tunisia

• Algeria-Italy Gas Pipeline via Sardinia from El Kalato Cagliari (Sardinia) [proposed]

• Trans-Saharan Pipeline from Warri in Nigeria toArzew [proposed]

6.4.3 Products Pipelines

• Has si R'Mel to Eldoret

• Has si R'Mel to Hassi Messaoud

7 Outlook

Owing to its hydrocarbon resources and associated in-frastructure and its location close to Europe (which wasthe major market for its minerals), Algeria’s hydrocar-

bon sector is expected to continue to attract foreign di-rect investment. Continued high international commod-ity prices were expected to encourage continued domesticand international interest in the Government’s program topartially divest its ownership interest in nonfuel mineraloperations.[1]

Successful mineral fuel and nonfuel mineral explorationcould result in increased mineral commodity develop-ment opportunities. The Government proposes to in-crease oil production (subject to production quotas of theOrganization of the Petroleum Exporting Countries) andto increase natural gas exports by 2010.[1]

8 References

[1] Philip M. Mobbs. “The Mineral Industry of Algeria”.2006 Minerals Yearbook . U.S. Geological Survey (April2008). This article incorporates text from this U.S. govern-ment source, which is in the public domain.

[2] Malik, Boulos A. “Minerals”. Algeria country study.Library of Congress Federal Research Division (Decem-ber 1993). This article incorporates text from this source,which is in the public domain.

[3] Where necessary, currency values have been convertedfrom Algerian dinars (DA) to U.S. dollars (US$) atthe average rate of DA75.18=US$1.00 for 2006 andDA73.44=US$1.00 for 2005.

[4] Halbouty, M.T. editor, AAPG Memoir 14: Geology ofGiant Petroleum Fields, Tulsa: AAPG.

[5] “North Africa Pipelines map”. Theodora.com/pipelines .Retrieved 2011-03-06.

http://www.theodora.com/pipelines/north_africa_oil_gas_products_pipelines_map.htmlhttps://en.wikipedia.org/wiki/Public_domainhttps://en.wikipedia.org/wiki/Federal_Research_Divisionhttps://en.wikipedia.org/wiki/Library_of_Congresshttp://lcweb2.loc.gov/frd/cs/dztoc.htmlhttps://en.wikipedia.org/wiki/Public_domainhttps://en.wikipedia.org/wiki/U.S._Geological_Surveyhttps://en.wikipedia.org/wiki/Minerals_Yearbookhttp://minerals.usgs.gov/minerals/pubs/country/2006/myb3-2006-ag.pdfhttps://en.wikipedia.org/wiki/Hassi_Messaoudhttps://en.wikipedia.org/wiki/Hassi_R%2527Melhttps://en.wikipedia.org/wiki/Eldorethttps://en.wikipedia.org/wiki/Hassi_R%2527Melhttps://en.wikipedia.org/wiki/Arzewhttps://en.wikipedia.org/wiki/Nigeriahttps://en.wikipedia.org/wiki/Warrihttps://en.wikipedia.org/wiki/Trans-Saharan_gas_pipelinehttps://en.wikipedia.org/wiki/Sardiniahttps://en.wikipedia.org/wiki/Cagliarihttps://en.wikipedia.org/wiki/El_Kalahttps://en.wikipedia.org/wiki/GALSIhttps://en.wikipedia.org/wiki/Tunisiahttps://en.wikipedia.org/wiki/Bolognahttps://en.wikipedia.org/wiki/Hassi_R%2527Melhttps://en.wikipedia.org/wiki/Trans-Mediterranean_Pipelinehttps://en.wikipedia.org/wiki/Tunisiahttps://en.wikipedia.org/wiki/Gabeshttps://en.wikipedia.org/wiki/El_Bormahttps://en.wikipedia.org/wiki/Almeriahttps://en.wikipedia.org/wiki/Beni_Safhttps://en.wikipedia.org/wiki/Medgazhttps://en.wikipedia.org/wiki/Tarifahttps://en.wikipedia.org/wiki/Hassi_R%2527Melhttps://en.wikipedia.org/wiki/Maghreb%E2%80%93Europe_Gas_Pipelinehttps://en.wikipedia.org/wiki/El_Kalahttps://en.wikipedia.org/wiki/Hassi_R%2527Melhttps://en.wikipedia.org/wiki/GALSIhttps://en.wikipedia.org/wiki/Hassi_R%2527Melhttps://en.wikipedia.org/wiki/In_Salahhttps://en.wikipedia.org/wiki/Hassi_Messaoudhttps://en.wikipedia.org/wiki/In_Amenashttps://en.wikipedia.org/wiki/Arzewhttps://en.wikipedia.org/wiki/Hassi_R%2527Melhttps://en.wikipedia.org/wiki/Algiershttps://en.wikipedia.org/wiki/Hassi_R%2527Melhttps://en.wikipedia.org/wiki/Skikdahttps://en.wikipedia.org/wiki/Hassi_R%2527Melhttps://en.wikipedia.org/wiki/Hassi_R%2527Melhttps://en.wikipedia.org/wiki/Hassi_Messaoudhttps://en.wikipedia.org/wiki/Arzewhttps://en.wikipedia.org/wiki/Haoud_El_Hamrahttps://en.wikipedia.org/wiki/Skikdahttps://en.wikipedia.org/wiki/Bejaiahttps://en.wikipedia.org/wiki/Skikdahttps://en.wikipedia.org/wiki/Annabahttps://en.wikipedia.org/wiki/Arzewhttps://en.wikipedia.org/wiki/Algiershttps://en.wikipedia.org/wiki/Tunisiahttps://en.wikipedia.org/wiki/La_Skhirrahttps://en.wikipedia.org/wiki/El_Bormahttps://en.wikipedia.org/wiki/Tunisiahttps://en.wikipedia.org/wiki/La_Skhirrahttps://en.wikipedia.org/wiki/La_Skhirrahttps://en.wikipedia.org/wiki/Edjelehhttps://en.wikipedia.org/wiki/Zarzaitinehttps://en.wikipedia.org/wiki/Trapsahttps://en.wikipedia.org/wiki/Haoud_El_Hamrahttps://en.wikipedia.org/wiki/Rhourde_El_Bagelhttps://en.wikipedia.org/wiki/Haoud_El_Hamrahttps://en.wikipedia.org/wiki/In_Amenashttps://en.wikipedia.org/wiki/Arzewhttps://en.wikipedia.org/wiki/Haoud_El_Hamrahttps://en.wikipedia.org/wiki/Skikdahttps://en.wikipedia.org/wiki/Haoud_El_Hamrahttps://en.wikipedia.org/wiki/Bejaiahttps://en.wikipedia.org/wiki/Haoud_El_Hamrahttps://en.wikipedia.org/wiki/Algiershttps://en.wikipedia.org/wiki/Beni_Mansourhttps://en.wikipedia.org/wiki/Pipeline_transport


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4 9 TEXT AND IMAGE SOURCES, CONTRIBUTORS, AND LICENSES

9 Text and image sources, contributors, and licenses

9.1 Text

• Mining industry of Algeria Source: https://en.wikipedia.org/wiki/Mining_industry_of_Algeria?oldid=697588112 Contributors: Icairns,CeeGee, Dbfirs, Allens, SmackBot, TimBentley, Hibernian, Thricecube, Dr. Blofeld, R'n'B, M-le-mot-dit, Hugo999, Xenus, Mangostar,Jusdafax, Ottre, XLinkBot, Addbot, Reconsider the static, Kilon22, Akhil 0950, Шиманський Василь, ClueBot NG, Mahmoudb1953,Pi3.124 and Anonymous: 7

9.2 Images

• File:Algeria_pipelines_map.jpg Source: https://upload.wikimedia.org/wikipedia/commons/a/a9/Algeria_pipelines_map.jpg License: CC BY-SA 3.0 Contributors:

• Gas_pipelines_across_Mediterranee_and_Sahara_map-en.svg Original artist: Gas_pipelines_across_Mediterranee_and_Sahara_map-en.svg: Sémhur

• File:Flag_of_Algeria.svg Source: https://upload.wikimedia.org/wikipedia/commons/7/77/Flag_of_Algeria.svg License: Public domainContributors: SVG implementation of the 63-145 Algerian law "on Characteristics of the Algerian national emblem" ("Caractéristiques duDrapeau Algérien", in English). Original artist: This graphic was originaly drawn by User:SKopp.

9.3 Content license• Creative Commons Attribution-Share Alike 3.0
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