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FINANCIAL NEWS
Algeria to establish state mining firm
09 Dec 2010
(MENAFN) Algerian Energy and Mines Minister Youcef Yousfi stated that the government is planning to set up a mining group to consolidate state-owned assets in the sector, Reuters reported.
The announcement appeared to be part of a government policy of giving a greater role to domestic firms and creating state-run national champions in strategic sectors of the economy.
Gold miner GMA Resources and zinc miner Terramin Australia are the biggest foreign investors in Algerian mining since the government opened the sector to foreign investment in 2001.
GMA has been operating the Amesmessa-Tirek mine, Algeria’s main gold mine, while Terramin has started exploiting a zinc and lead mine.
OPEC member Algeria is a major exporter of oil and gas but its mining sector is under developed. It is potentially attractive to investors because of its close proximity to European markets. The country mines mostly gold, zinc and iron.
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