Tuesday, 7 December 2010
Algeria to set up a state mining group
Algeria's Energy and Mines Minister Youcef Yousfi has said that Algeria is going to set up a mining group to consolidate state-owned assets. The move is part of a bigger plan by the government to give a greater role to domestic firms and create a state monopoly in the most lucrative sectors of the economy.
"We will create a mines group. There is a huge development programme for this sector," said Yousfi during a conference in Algiers.
GMA Resources and Terramin Australia are two of the biggest foreign investors in Algeria, since Algiers opened the sector to foreign investment in 2001. The country's mining sector is largely undeveloped, but it is potentially attractive to foreign investors due to the country's proximity to European markets.
In the last couple of years, Algeria has launched several licensing rounds inviting foreign firms to acquire mining concession in partnership with domestic companies. The Algeria law stipulates that the stake a foreign company can hold in any one investment is limited at 49 per cent.
For more news and expert analysis about Algeria please see Algeria Focus and Algeria Politics & Security.