Algeria Banks on Gold Production to Boost Its Economy

Algeria, whose gold reserves are estimated to be around 173.56 million tonnes at the end of the third quarter of last year, is set poised to increase its gold production in the coming years with the relaunching of Tirek and Ammessissa mines in Tamanrasset soon.

With six active gold mines and mining operations, Algeria produced closed to 138 kg of gold in 2022, with the Amesmessa gold mine serving as one of the most significant in the country. The mine is home to high-grade deposits – estimated at 748,000 tons of ore, and is capable of producing an estimated 294,000 ounces of gold.

Ranked 26^th globally and third in the Middle East and North Africa (MENA) region, in terms of gold reserves, Algeria is a major player in the production of this strategic natural resource for global central banks. The North African nation is also ranked first in Africa, ahead of South Africa and Nigeria, as far as gold production is concerned.

Belkacem Soltani, CEO of the state-owned mining group Sonarem, announced that this surge in gold output is expected to contribute substantially to the country’s mining sector. Besides gold, Algeria has vast deposits such as Phosphate, Zinc, Iron ore and Gypsum.

In addition, he also said that the Group has been working to open up the Algerian mining sector to foreign companies to encourage investment, attesting to receive several investment offers from companies of different nationalities, notably Chinese, Malaysian, Belgian and Indonesian.

Mining Licences

Turning to traditional gold mining, Soltani reported that some 46 mining licenses were issued in 2024 to companies and the national production of this precious metal had reached some 351 kg between 2022 and December 2024.

As far as industrial gold mining was concerned, Soltani announced the Group’s forecasts for an increase in gold production in Algeria in the coming years, particularly following the re-launch of the Tirek and Ammessissa gold mines in the wilayat of Tamanrasset, which will soon resume production after a shutdown of over 10 years.

He affirmed that the major structuring mining projects were progressing at a very advanced pace, in line with the objectives set, assuring that these projects will be delivered on schedule. They included the Gara Djebilet iron mine (Tindouf), the Bled El-Hadba integrated phosphate mine (Tébessa) and the Tala Hamza-Oued Amizour zinc and lead mine (Béjaïa).

The Sonarem Group will mobilise all the material and human resources necessary to complete these structuring projects, following the instructions of Algerian President Abdelmadjid Tebboune, who has insisted on the need to carry them out as quickly as possible given their significant impact on the national economy.