Algeria, China to build $6b phosphate extraction project

Algeria and China will launch a mega construction project on Sunday to extract phosphate, an industrial expert told Xinhua on Wednesday.



Algerian Prime Minister Ahmed Ouyahia will launch the mega project in the easternmost region of Algeria bordering Tunisia.



The project involves a partnership of two Algerian groups and two Chinese groups, the expert said.



China's share in the project is estimated at 49 percent, while the Algerian party will hold the majority share of 51 percent.



The shareholders are due to establish the consortium on Sunday, while the production phase is planned for 2022.



On September 13, Algerian Minister of Industry and Mines Youcef Yousfi said that the phosphate complex will begin operating in 2022.



The project, whose production should reach 6 million tons per year, will include the duplication of the railway connecting the production site to the port of Annaba, and would generate 2,500 permanent jobs.



The project aims at exploiting huge quantities of high quality phosphate, which will then be used to produce fertilizers, ammonia, silicon and other materials.



Algeria aims to be able to export fertilizer worth $2 billion a year, and gradually increase its phosphate and natural gas reserves through the establishment of a structured and wealth-generating industry, which would help Algeria become one of the largest fertilizer exporters in the world.



In October 2016, the two sides signed a pact to reinforce and diversify their bilateral partnership in the processing industry, exploitation of energy resources, metal trade, railways, iron and steel and basic infrastructure.



The first meeting of the joint commission in charge of the implementation of the agreement held in Algiers drew up five projects - the mega port of El Hamdania in western Algiers, the phosphate mining project in eastern Algeria, the establishment of automotive subcontracting plants, manufacturing electronic payment devices, and developing granite and marble mining.



Xinhua

