Algeria’s $7 billion phosphate project set for early 2027 completion

Algeria’s $7 billion Integrated Phosphate Project is scheduled for completion in the first quarter of 2027, according to a 2nd of June report by the London-based news outlet Arabian Gulf Business Insight.

President Abdelmadjid Tebboune announced the timeline on June 1st following a cabinet meeting. The initiative aims to quadruple the country’s annual phosphate production capacity. It will elevate output from 2.5 million tonnes to 10.5 million tonnes per year.

The venture launched in 2021 at the Bled El Hadba mine in the northeastern Tbessa province. State energy firm Sonatrach owns the project alongside other public entities. The initial investment of $3 billion was later increased to meet the project’s expanding scope. The development also includes the construction of a 400-kilometre rail line to a port.

According to the official Algeria Press Service (APS), a significant portion of the phosphate will be used to produce fertiliser. Production will mainly focus on ammonia and urea. The first phase aims to generate around 5.4 million tonnes of these products. This output will be marketed both locally and abroad. Algeria controls nearly 3 billion tonnes of phosphate deposits. This ranks among the ten largest reserves in the world. The state’s industrial drive runs parallel with plans to develop its hydrocarbon sector after years of low investment.

This industrial expansion takes place within a broader regional context as North Africa holds approximately 85% of the world’s total phosphate reserves. A November 9th Maghrebi.org report underlines that civil society groups and independent researchers across the Maghreb have routinely called for higher operational transparency, noting that institutional data regarding the industry’s health and ecological side effects are often tightly guarded by state authorities. As Sonatrach and its public partners advance toward the 2027 operational deadline, balancing these massive economic gains with environmental transparency will remain a central challenge for Algiers.

Maghrebi.org, Arabian Gulf Business Insight, Algeria Press Service (APS).