ALGIERS – Algerian Minister of State, Minister of Energy, Mines, and Renewable Energy, Mohamed Arkab, said on Tuesday in Algiers that the energy and mining sector is an important pillar in the diversification of the country’s economy, as part an integrated national strategy.
During a conference on “Strategies for Economic Diversification for Sustainable Development” held at the International Conference Center (Abdellatif-Rahal) as part of the Annual Meetings of the Islamic Development Bank (IDB), the Minister of State said that Algeria’s national strategy to diversify economy and reduce dependence on hydrocarbons relies heavily on the energy and mining sectors.
This strategy includes developing manufacturing industries and expanding electricity coverage for agricultural and industrial sectors to enable wealth creation, job generation, and increased value-added.
Regarding hydrocarbons, an intensive program has been launched, reflected in various projects such as the Skikda refinery and the new Hassi Messaoud refinery with a capacity of 5 million tonnes per year.
This refinery project, restarted in late 2024 with a new consortium including Spanish Técnicas Reunidas and Chinese Sinopec, represents a $4 billion investment and aims to meet growing domestic fuel demand and eventually export surplus refined products.
The refinery is expected to start producing fuel oil by October 2027 and will improve supply chains, reduce transport costs, and ease pressure on existing refineries.
Electricity and renewable energy are also key pillars in the energy sector’s contribution to economic diversification.
Large projects are planned to extend the electricity network to industrial zones and agricultural areas, supporting industry and agriculture to accelerate diversification.
Sonelgaz is launching an ambitious project to manufacture various energy equipment, supporting technology mastery through projects in electricity production, transport, and storage.
The Minister highlighted the importance of mining projects such as the Gara Djebilet iron mine, the Oued Amizour zinc mine in Béjaia, and an integrated phosphate project in eastern Algeria.
Additional mining projects are expected to become operational, aiming to create wealth, secure jobs in multiple regions, foster technological mastery, and promote industrial development.
