Mining industry of Algeria

The state mining and prospecting corporation, the National Company for Mineral Research and Exploration (Société Nationale de Recherches et d'Exploitations Minières), was established in 1967.

As a result of the government's decentralization policy, the company was restructured in 1983 into separate production and distribution entities.

The most important of these were an iron ore and phosphate company known as Ferphos [fr], which had three production units and a port complex at Annaba, and another company called Erem that specialized in conducting mineral research at Boumerdès on the Mediterranean Sea, and Tamanrasset in the south.

[1] Revenue attributed to natural gas and petroleum production, processing, and sales activity accounted for 78% of 2006 government income.

Mineral commodities with notable production increases included aggregate and crushed stone, barite, cement, dolomite, feldspar, iron ore, phosphate rock, salt, construction sand, and steel.

Mineral commodities with notable production decreases included ammonia, gold, gypsum, helium, pozzolan, quartzite, silica sand, silver, and zinc.

Large- and medium-sized public-sector enterprises dominated the ranks of barite, bentonite, cement, natural gas, petroleum, and phosphate rock producers.

At year end, the joint venture was reevaluating whether to continue exploration of the isolated Tan Chaffao deposit, which is about 250 kilometres [km] (160 mi) northwest of Tamanrasset.

Designed with a nominal production capacity of 16 million cubic metres (570×10^6 cu ft) per year of liquid helium, the plant capacity would be restricted to 8 million cubic metres (280×10^6 cu ft) per year because of an explosion and fire that destroyed three LNG trains at Skikda in 2004.

[6] High international crude oil and natural gas prices encouraged stepped-up exploration and development drilling in Algeria.

[1] Existing and expected local and European high demand for oil and gas has resulted in the construction and planning of a number of pipelines in Algeria:[7] Owing to its hydrocarbon resources and associated infrastructure and its location close to Europe (which was the major market for its minerals), Algeria's hydrocarbon sector is expected to continue to attract foreign direct investment.