'End of resource nationalism': Algerian opposition protest opening mines to foreign capital

Three of Algeria's leading progressive parties have urged President Abdelmadjid Tebboune to halt a newly approved mining investment law, warning that it could open the floodgates to unchecked foreign control over the country's natural resources.

A joint statement, signed by the Workers' Party (PT), the Rally for Culture and Democracy (RCD), and the New Generation Party (Jil Jadid), denounces the legislation—ratified by both houses of Parliament earlier this month—as a significant break from Algeria's legacy of resource nationalism.

"This law is unconstitutional, unpatriotic, and must be frozen", said Soufian Djilali, head of the opposition party New Generation.

"These resources belong to the Algerian people, according to the constitution, and are an inalienable part of the nation's collective wealth," added the politician, who argued that he supports a more liberal economic approach in Algeria but not at the price of the country's sovereignty. 

At the centre of the controversy is Article 102, which caps the state's stake in mining ventures at 20 per cent, allowing up to 80 per cent ownership by foreign or private entities. These terms are granted under renewable 30-year concession contracts.

Algeria holds substantial mineral reserves, including an estimated 20 per cent of the world's rare earth elements, concentrated primarily in its southern regions, according to official data.

Major sites such as the Gara Djebilet iron ore mine, one of the largest globally, with reserves of 3.5 billion tonnes, and the Bled El Hadba phosphate project illustrate the sector's potential.

Yet despite the country's resource wealth, the mining sector contributes less than one per cent to Algeria's gross domestic product, as of the end of 2020.

Critics contend that the new law effectively hands control of the mining sector to multinational firms, with limited state oversight and no binding commitments to reinvest profits domestically or adhere to environmental protections.

The three parties also condemned ignoring the 51/49 rule, a longstanding regulation that had guaranteed Algerian majority ownership in strategic sectors.

"This law cancels national sovereignty over mineral resources, in a blatant violation of the constitution and a direct infringement on the interests of future generations," the parties said in a press release published on 26 July.

They warned that the new legal framework enables investors to mortgage national assets, transfer ownership rights, and draw on public funds, all without sufficient safeguards for the national interest.

The statement marks a rare moment in post-Hirak Algeria, where political parties—whether in government or opposition—have seldom publicly opposed legislation backed by Algerian president Tebboune.

Both the president and Energy Minister Mohamed Arkab have defended the law, describing it as a strategic necessity to meet domestic market needs and boost hard currency revenues through increased exports.

Arkab informed the Algerian parliament in May that the law was the result of over three years of research and consultation, and that it would streamline investment procedures while attracting foreign capital and advanced technologies.

Following independence from France, Algeria enshrined socialism in its 1976 Constitution, declaring that "the Algerian state is socialist" and defining socialism as the foundation of its political and economic systems.

Though subsequent constitutions have removed that clause, the country has continued to pursue nationalisation policies, influenced by its Marxist-leaning founding elites and long-standing ties with the Soviet Union and, more recently, Russia.

Yet there are signs of shifting doctrine. 

As Algeria faces growing pressure to diversify its economy and secure hard currency inflows, its leadership has begun signalling greater openness to international capital.

Nowhere is this policy shift more evident than in the tourism sector. Long neglected due to political instability, strict visa policies, and the country's focus on oil and gas, Algeria has recently introduced reforms aimed at reviving the sector. 

The government has eased visa requirements, launched global promotional campaigns, and announced regulatory changes designed to attract visitors to its Mediterranean coast and vast Sahara.

In a recent interview with local media, President Tebboune said Algeria's foreign relations "are not black and white; there's grey. We have good relations with both Russia and the United States."

"Our diplomatic relations with the US are good, and we discuss a lot of issues, not necessarily in public," Tebboune added.