backOn 3 August 2025, Algeria enacted a new law No. 25-12 governing mining activities (the “New Mining Law”), repealing and replacing law No. 14-05 of 24 February 2014 (the “Old Law”).
The New Mining Law, published in the Official Gazette on 7 August 2025, introduces sweeping changes designed to enhance the sector’s attractiveness and improve the foreign investment climate.
Setting the scene
This legislative overhaul is part of Algeria’s broader strategy to diversify an economy long dominated by hydrocarbons.
Despite hosting vast untapped deposits –phosphates, iron, gold, zinc, manganese, and numerous industrial minerals– the mining sector contributes barely 1% to GDP. By modernizing its legal framework, investing in geological mapping and exploration, and launching flagship projects, Algeria aims to unlock this potential, stimulate job creation, and reduce dependence on hydrocarbons.
Key Highlights of the New Mining Law
- Evolution of the exploitation regime and relaxation of the 49%-51% rule
Under the Old Law:
- Mining titles (for exploration and/or exploitation of mines) were granted exclusively to a State-owned entity designated among the various entities dedicated to different types of minerals; and
- Foreign investors could only participate through a mining agreement with the relevant State-owned entity holding at least 51% interest.
Under the New Mining Law:
- In the exploration phase, foreign entities may now directly apply and be granted prospection authorizations and exploration permits.
- In the exploitation phase, a distinction is made between mines and quarries.
- Mines: exploitation permits must be held by an Algerian company, but foreign investors may own up to 80% of its share capital (minimum 20% by an Algerian State-owned entity). Further dilution of the State’s stake upon capital increase may be negotiated with the relevant State-Owned entity.
- Quarries: exploitation permits must also be held by an Algerian company, but foreign ownership is capped at 49%, with a State-owned entity retaining at least 51%.
A forthcoming ministerial order will specify which non-metallic substances fall under the quarry regime. Traditionally, quarries include construction and land development materials (e.g. limestone, clay, granite), while mines cover radioactive, metallic, and certain non-metallic substances (e.g. phosphate, kaolin, marble, precious metals).
- Extended exploitation period
Under the Old Law, the maximum term for exploitation permits was 20 years, for both mines and quarries.
Under the New Mining Law, exploitation permits for mines may be granted for up to 30 years, renewable in successive 20-year periods as long as reserves permit. For quarries, exploitation permits may be granted for up to 15 years, renewable in successive 10-year periods as long as reserves permit.
- Announced simplification of the permitting process
When the bill was submitted to Parliament and subsequently to the Senate for adoption, the Government emphasized the objective of streamlining the procedure for granting mining titles, in contrast to the Old Law, which required a dual-track process under both mining and environmental legislation, a system that was often lengthy and burdensome.
The specific details of the new procedure have not yet been released and are expected to be defined in forthcoming implementing regulations.
- Standard specifications ("cahier des charges-type")
All mining titles and authorizations are subject to specifications ("cahier des charges") defining general and specific obligations, minimum work and expenditure commitments. Standard specifications will be set by ministerial order, still pending publication.
- Local content requirements
The specifications may impose domestic supply, local processing or refining obligations. For processing activities, partnerships with Algerian individuals or entities and/or foreign companies are permitted.
Other requirements include:
- preference to Algerian companies for goods and services (when competitive);
- priority use of Algerian personnel; and
- direct or indirect training of Algerian workers for mining operations.
- Tax provisions
Taxes and royalties will be determined by finance laws. Until updated, existing fiscal provisions under the Old Law remain applicable. These include:
- surface taxes, calculated on different tariffs applicable for exploration and production; and
- royalties, calculated at rates specific to each type of mineral or fossil substance.
- Transfers and pre-emption rights
Transfers of mining titles require prior approval from the Algerian National Mining Agency, accompanied by detailed disclosure of economic terms.
State-owned entities hold a pre-emption right over transfers of exploitation permits involving foreign ownership. Unauthorized transfers are null and void and may lead to withdrawal of the titles.
- Transitory provisions
Legacy mining permits under the Old Law remain valid until expiry but cannot be renewed. However, holders may opt into the New Mining Law’s regime within 24 months of its publication, for the remaining term of their permits, upon formal renunciation of their existing titles.
Implications for investors and operators
The enactment of the New Mining Law marks a decisive step in Algeria’s ambition to revitalize its mining sector and attract foreign investment. While the full scope of its application will be clarified through forthcoming implementing regulations, the new framework already offers enhanced flexibility and clearer pathways for international participation.
Our team is available to provide strategic legal guidance on navigating this evolving landscape, including support with licensing procedures, structuring joint ventures, complying with local content obligations, and advancing mining projects in Algeria.