Algeria to Build Three Phosphate Complexes

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Researched by Industrial Info Resources (Sugar Land, Texas)--While Algeria has phosphate ore reserves of about 2 billion tons, its phosphate production was lower than 2 million tons at the end of 2009. At the beginning of 2010, Algeria adopted an ambitious plan to produce 4 million tons of phosphate by the end of 2011, then expand to produce 30 million tons in 2020, with the aid of experienced international companies in the mining and industrial phosphate fields.

In January 2010, state phosphate mining company Ferphos announced a plan to build a processing plant at Bouchegouf, 450 kilometers east of Algiers, with the capacity to produce between 2 million and 3 million tons of phosphates annually. The Bouchegouf facility will be used to extract raw mineral phosphates, and will have the processing capacity to turn the material into fertilizers, adding value to export sales. The project will be financed through a 49% share of Engro Chemical Pakistan Society Limited, a 22% share of the national company Sonatrach, and the rest through a share of Ferphos.

There are two other planned complexes, one with similar facilities to Bouchegouf that will be established at Mdarouche, and another with an annual capacity of 12 million to 14 million tons to be built in Jijel, 350 kilometers east of the capital. All processing facilities will be close to the massive Djebel Onk mining complex, which is 20 kilometers from the Tunisian border, in the province of Tebessa. This project will create 6,000 jobs and should generate receipts, which will exceed $2.35 billion per year.

Algeria is pursuing policies aimed at exploiting all metal and mineral wealth, including zinc and silver, to support its economy and to meet local demand for such material. In this regard, Faïenceries Algériennes, an industrial company in Algeria, has signed an agreement with Celamin to hold an exploitation permit covering the Oued El Kebir deposit, which has a pre-JORC resource of 11.5 million tones at 2.6% lead, 2.1% zinc, 0.7% copper and 95-gram-per-ton silver. This agreement entitles Celamin to earn a 50% interest in this project by completing a feasibility study.

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