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Tuesday, 18 October 2011 00:00 Afro Asian Leading sectors

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PHOSPHATES & FERTILIZERS

Algeria is a relatively minor supplier of phosphate and rock phosphate, accounting for 1.8 million tons in 2009. But plans are being implemented in order to reach 6 million in 2013 and 12 million by 2018. The Pakistani Engro Corp. Ltd has invested this year $1,000 million in a new phosphate fertiliser plant in Algeria and hopes to start production before 2015, targeting an output in the range of 1-2m. tpa of diammonium phosphate (DAP).

The project which was approved by the state contributions council on February, aims at raising the exploitation of a phosphate mine in the north-eastern part of Algeria (Tebessa), which contains more than one billion tons of reserves, and 6 million tons per year presently, of which only 2 million tons are exported in the a crude form.

The total rock phosphate reserves of Algeria are evaluated at 6 billion tons and more investments in the field are encouraged under joint-ventures.

The phosphate deposit in the Paleozoic fold belt of northern Algeria
Algeria produces just less than 2 million tons of phosphates a year.
Estimated 2 billion tons of reserves, to last for another 65 years
Exports to touch 30 million tons by 2020.

Algeria currently produces just less than 2 million tons of phosphates a year. Ferphos, the state phosphate mining company hopes to increase exports from 4 million tons in 2010 to 30 million tons by 2020. This would see Algeria become the third largest phosphate producer in the world, after the US and China. Given the current high price of minerals in the market, investment in the sector is increasingly attractive. Should Ferphos meet its 2020 target, phosphate sales could generate $7-8 billion a year for the state.

The Djebel Onk phosphate mine is the primary producer of hard rock phosphate in Algeria. The mine is located in south of Annaba and has reserves estimated at 2 400 Mt grading at an average of 24% P2O5. Algerian National iron and phosphate enterprise, Ferphos, owns the Djebel Onk complex.

Enasel is a major Algerian operator in the production and marketing of nutrient and industrial salt. Its production originates from 5 salt marshes located in Béthioua (Oran), Sidi Bouziane (Relizane), Guergour Lamri (Sétif), El Méghaïer (El Oued) and Ouled Zouaï (Oum el Bouaghi) for an annual quantity of 400,000 tons of solar salt and 30,000 tons of rock salt from a refinery located in El Outaya (Biskra).

Even at full pelt, Algeria’s phosphate reserves should last another 65 years. However, to maximize value from this finite resource the government is also looking to diversify the industry vertically. The Bouchegouf facility will not only be used to extract raw mineral phosphates, but will also have the processing capacity to turn the material into fertilizers, adding value to export sales.

With an estimated 2 billion tons of reserves, Algeria’s main limiting factor in output is currently infrastructure. However, the announcement on December 15, 2010 that the government intends to spend $18 billion on upgrading the country’s rail network, including the opening of a new line in Tebessa, will go a long way to easing Ferphos’s concerns about land haulage.

Algeria has announced ambitious plans to increase the phosphate production, generating valuable additional export revenue for the state, and creating up to 50,000 jobs.

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