Algeria has taken a new step in the Algerian-Chinese megaproject. A megaproject which aims to develop a phosphate processing industry for the production of fertilizers in the eastern regions ofAlgeria.
This step is materialized in a shareholder pact for the creation, in partnership, of a joint-stock company under Algerian law, in order to begin the preliminary activities relating to the development of the Integrated Phosphate Project (PPI).
The pact was signed today, Tuesday March 22, in Algiers by the Algerian groups Asmidal, a subsidiary of Sonatrach and Manal on the one hand, and the Chinese companies Wuhuan and Tian’an on the other.
Indeed, the Chinese partners were selected following an open call for expressions of interest, launched by the Algerian side in May 2021.
The new company created is called “Algerian Chinese Fertilizers Company (ACFC)”, a title that refers to the Algerian-Chinese partnership. This company is 56% owned by the Algerian side and 44% by the Chinese side. The project represents an investment of approximately seven (7) billion dollars.
A first integrated project
It is important to know that the Integrated Phosphate Project (PPI) is the first integrated project in Algeria in the field of mining and fertilizer production. And this, according to the information revealed during the signing ceremony.
In addition, the Integrated Phosphate Project will pass through the wilayas of eastern Algeria, namely: Tébessa, Souk Ahras, Skikda and Annaba. The project will include the development and exploitation of the phosphate deposit of Bled El Hadba, Djebel Onk, wilaya of Tébessa, the chemical transformation of phosphates in Oued Kébérit, wilaya of Souk Ahras, the manufacture of fertilizers in Hadjar Soud, wilaya of Skikda , as well as dedicated port facilities at the port of Annaba.
Once the project is completed, the company will eventually produce 5.4 million tons of fertilizer per year. And it will allow the creation of regarding 12,000 jobs in the construction phase and, in the long term, in the operating phase, regarding 6,000 direct jobs and 24,000 indirect jobs.