The piece was prepared in collaboration with Loucif + Co.
On 3 August 2025, Algeria enacted Law No. 25-12 regulating mining activities, published in Official Journal No. 52 on 7 August 2025. The new law replaces the 2014 mining framework, with the stated aim of opening the sector to capital and technology, reducing administrative barriers, and providing a more attractive, transparent regime for both domestic and foreign investors.
We look briefly at some of the key changes.
Strategic Substances
Under the former Mining Law (Law No. 14-05 of 24 February 2014), the exploration and exploitation of deposits designated "strategic" were reserved for public economic enterprises whose share capital was directly or indirectly state-held (by the State or a public institution); mining titles for such deposits were granted exclusively to those entities. The new law abolishes the "strategic substances" category and the associated exclusivity, opening access to private investors under the general ownership and participation rules.
Shareholding Structure
Foreign investors must hold mining titles through Algerian-incorporated entities. A 'national company', defined under the new Mining Law as a State-owned mining sector company or its affiliated entities, must hold a default, non-dilutable 20% equity interest. The parties may agree to a higher stake if the economic interest is justified for both. Moreover, in competitive tenders, the national stake is not capped. As an exception, quarry operations are now subject to a minimum 51% Algerian ownership, whereas they were previously open to 100% foreign ownership.
Status of Mining Titles
To improve bankability, the legal status of mining titles is clarified. Exploration titles (titres miniers d'exploration) are movable property: they are assignable/transferable but may not be leased (amodiation) or subject to a mortgage. Exploitation titles (titres miniers d'exploitation) create limited real rights distinct from land ownership and may be transferred, leased (amodiation) and mortgaged, subject to prior approval by the National Agency for Mining Activities (Agence nationale des activités minières or ANAM). However, mortgages must be in favour of Algerian-regulated financial institutions and cannot cover in-situ reserves. Transfers, leases and mortgages must be recorded in the mining cadastre.
Term of Mining Titles
The duration of mining titles has been extended and clarified: an exploration permit is granted for a maximum initial period of four years, renewable twice for up to two years each. A quarry exploration permit is granted for a maximum initial period of two years, renewable twice for up to one year each. A mining exploitation permit is granted for up to thirty years, with successive renewals permitted, so long as exploitable reserves remain, for periods not exceeding twenty years each. A quarry exploitation permit is granted for up to 15 years, with successive renewals permitted, so long as exploitable reserves remain, for periods not exceeding ten years each. Renewal requires compliance with the commitments undertaken during the previous period and the approval by ANAM of a development plan covering the requested period. The holder of a mining or quarry exploration permit who establishes the existence of a commercially exploitable deposit is recognised as having inventor's rights, conferring priority to obtain the corresponding exploitation permit.
Streamlined Procedures
Procedures are streamlined. Except for prospecting, applications for mining permits and authorisations are subject to a prior administrative inquiry undertaken at the wilaya (district) level, together with the opinion of the wali (regional governor). A favourable opinion of the wali issued for an exploration title remains valid for the exploitation title within the initial perimeter upon its conversion, and the wali may not alter that assessment at the time of conversion. Quarry-exploitation authorisations are delivered by the wali following the issuance of an opinion by ANAM.
State Owned Companies' Pre-emption Right
Under the former Mining Law, state-owned companies held a pre-emption right only in respect of transfers involving strategic substances. Law No. 25-12 extends this right to cover all transfers of rights and obligations arising from exploitation titles held by Algerian-incorporated companies with foreign shareholding, save for intra-group transfers. The right must be exercised within 60 days via ANAM, and on identical terms to the proposed transfer, failing which the right is deemed waived.
Classified facilities (établissements classés)
Previously, mining activities were governed by a dual regulatory framework: (i) mining legislation and regulations, under which mining titles and permits were granted following favourable opinions from the walis; and (ii) environmental legislation and regulations for "établissements classés", which required separate decisions authorising the construction of the facility and to operate it.
The new law narrows the classified facilities regime: exploration and extraction activities relating to mineral or fossil substances are excluded from that specific regime; only processing, refining, enrichment and recovery facilities for extracted mineral substances remain subject to this regime.
Local Content
Local content instruments are introduced. Specifications (cahier des charges) must now incorporate a preference for competitive Algerian providers of goods and services. Titleholders and subcontractors are further required to prioritise Algerian hiring and provide training at project launch. Under the new law, ANAM may also impose obligations to supply to the domestic market, as well as in-country processing or refining, including through local or foreign partnerships.
Mining Waste
Waste gets a market. The text establishes a legal framework for the exploitation of mining waste and piles. Any Algerian person may obtain an exploitation permit within a free perimeter on a first-come, first-served basis. Holders of mining permits are exempt from this additional authorisation when exploiting piles and slag heaps resulting from their own activities. For operating needs, those holders may also use quarry products from blasting operations, subject only to a declaration to ANAM.
Transitional provisions
Mining titles issued under Law No. 14-05 remain in force until expiry. Except for titles granted by the walis, holders have 24 months from the publication of Law No. 25-12 to apply for conversion to the new regime, subject to formally relinquishing the former mining title. Mining titles not converted within that period will continue until their term but are not eligible for renewal under the former regime. The tax provisions set out in Law No. 14-05 remain in force until replaced by those to be enacted in the next Finance Law.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
