Phosphate Project Establishes Algeria as Industrial Fertilizer Actor
Algeria is pursuing a national strategy to establish itself as an industrial power, focusing on an integrated approach that connects mineral exploitation with industrial transformation and subsequent export to external markets. This ambition is concretized through the integrated phosphate project, designed to be a significant driver for diversifying the national economy. The project marks a shift from solely producing raw materials to becoming an industrial player in the global fertilizer market.
The integrated phosphate project has entered an operational phase following the signing of two engineering, procurement, and construction (EPC) contracts. Italian group Saipem was awarded the contract for the transformation and fertilizer production facilities at Bled El Hadba in Tébessa and Oued El Kebrit in Souk Ahras. Concurrently, China Harbour Engineering Company (CHEC) secured the agreement for the dedicated port infrastructure at Annaba, essential for export operations. This comprehensive setup includes a phosphate extraction and enrichment complex at Bled El Hadba, targeting an annual extraction capacity of 5.5 million tonnes and producing 3.2 million tonnes of concentrated phosphate. At Oued El Kebrit, industrial units will transform the raw material into 2.4 million tonnes of phosphated fertilizers and 570,000 tonnes of nitrogen fertilizers annually, including urea, along with intermediate products like sulfuric acid, phosphoric acid, and ammonia.
The industrial infrastructure is supported by vital port facilities in Annaba and a 422 km East mining railway connecting the Bled El Hadba deposit to the Annaba commercial port, ensuring efficient transport and international market access. Executed under an accelerated EPC Fast Track formula, the complex is scheduled to begin producing enriched phosphate in the first quarter of 2027, with fertilizer production to follow in the fourth quarter of the same year. These timelines align with President Abdelmadjid Tebboune's directives to accelerate exploitation and transformation, aiming for the first phosphate exports from Bled El Hadba by March 2027. Upon reaching full capacity, the project is projected to yield approximately 6 million tonnes of enriched phosphate and nearly 4 million tonnes of various fertilizers annually, positioning it as a cornerstone for non-hydrocarbon export development and capitalizing on significant global demand driven by food security imperatives.
