Sonatrach Signs Contracts for Integrated Phosphate Project
Sonatrach, in conjunction with the Algerian Fertilizers Company, has signed two engineering, supply, and realization contracts. These agreements with Saipem and China Harbour Engineering Company represent a new phase in the integrated phosphate project, a strategic national facility. This development aligns with the President's vision for strengthening national economic sovereignty and diversifying the economy, moving towards a new approach for national economic development. The initial phase of the project is set for rapid execution, with the first deliveries of enriched phosphate anticipated in the first quarter of 2027.
The integrated project is designed to foster industrialization, create added value, and promote non-hydrocarbon exports. Upon completion, it is expected to produce approximately 6 million tons annually of enriched phosphate and 4 million tons of fertilizers. Additionally, it will yield strategic industrial materials such as sulfuric acid, phosphoric acid, and ammonia. This initiative is projected to generate about 12,000 direct jobs, particularly benefiting the wilayas of Tébessa, Souk Ahras, Skikda, and Annaba. The phosphoric acid plant is slated to commence operations by the end of 2026 or early 2027.
Significant infrastructure developments underpin the project, including a 422-kilometer Eastern Mining Railway connecting Hadaba to the Annaba port. This includes an expansion of the Annaba port with a dedicated mining berth for exports. The port's enhanced capacity will accommodate large vessels, positioning Annaba as a global logistical hub capable of attracting major international shipping companies and increasing the competitiveness of national mining products in international markets. The project has received continuous monitoring from the President, who ordered the start of Hadaba phosphate exports by March 2027 and the immediate construction of processing units alongside mine exploitation.
Economic experts consider this project among Algeria's most vital industrial facilities, as it extends beyond mere mineral extraction to establish an integrated value chain for high-value-added products. Its commencement of production in 2027 is expected to stimulate Algeria's fertilizer exports, driven by global demand for food security and agricultural expansion in Africa and Asia, thereby reducing reliance on raw material exports. This integrated phosphate project is also part of a wider series of major structural projects, including the Southern Railway, which is anticipated to be completed by the end of 2028.
