Algeria Officially Signs Strategic Contracts for Integrated Phosphate Project
On Wednesday, August 12, 2026, Algeria officially signed contracts for the realization of strategic installations linked to the Integrated Phosphate Project. The signing ceremony, held at the Sonatrach General Directorate headquarters, was overseen by the Minister of State, Minister of Hydrocarbons, Mohamed Arkab, and saw the presence of several government ministers, including those for Interior, Transport, Finance, Energy, Public Works, Water Resources, Mines, alongside the Secretary of State for Mines, the Ambassadors of China and Italy to Algeria, Sonatrach CEO Noureddine Daoudi, and representatives of partner companies. Two strategic contracts were formalized: one with China Harbour Engineering Company (CHEC) for the port facilities in Annaba, and the second with the Italian company Saipem for the execution of integrated phosphate project facilities at Bled El Hadba in Tebessa province and Oued El-Kebrit in Souk Ahras province, valued at approximately €500 million.
Minister Arkab emphasized that these signings represent a concrete transition to the field implementation phase of one of Algeria's largest mining and industrial structural projects. This initiative aligns with the directives of President Abdelmadjid Tebboune, aimed at valorizing national natural resources, bolstering local industrialization, and establishing a high value-added processing industry. The Integrated Phosphate Project is considered a cornerstone in Algeria's strategy to diversify the national economy, leveraging the substantial phosphate reserves in the Eastern Phosphate Basin and the nation's natural gas capabilities to create an integrated industrial chain for fertilizers and related chemical products, destined to fulfill national market demands and enhance non-hydrocarbon exports.
The project encompasses four main components: the phosphate mine at Bled El Hadba, phosphate enrichment units, the chemical transformation complex at Oued El-Kebrit, and comprehensive logistics infrastructure, including the expansion of port facilities in Annaba and a railway transport network. The adoption of an EPC Fast Track execution formula, as seen in the Saipem contract, aims to expedite completion, with enriched phosphate production slated to begin in the first quarter of 2027, followed by fertilizer production in the fourth quarter of the same year. This ambitious project is expected to significantly contribute to national food security through the provision of diverse phosphate and nitrogen fertilizers, generate considerable added value, create thousands of direct and indirect jobs, and support socio-economic development across Algeria's eastern provinces, ultimately reinforcing the country's stature as a regional and international player in the fertilizer and chemical products industry.
