Algeria, China sign pacts ahead of $6b mega phosphate project

"This is not the project of Sonatrach or CITIC; it is rather a federating project that will reinforce our partnership," he added.

It will enable Algeria to increase its phosphate output to 10 million tons a year, thus becoming the third largest phosphate reserves in the world.

China's share in this mega project is estimated at 49 percent, while the Algerian party will hold the majority share of 51 percent, in accordance with investment law of the North African country.

This integrated phosphate project is spread through four main places, namely El Hadaba mine in the easternmost province of Tebessa with an investment budget worth $1.2 billion, "Sulphur Stone" area in the easternmost province of Souk Ahras with an investment worth $2.2 billion , "the Black Stone" area in the north-eastern province of Skikda with an investment worth $2.5 billion, and the extension of the port of the northeastern province of Annaba with an investment worth $200 million.

The project will include the duplication of the railway connecting the production site to the port of Annaba, and connecting the sites with industrial water, gas and power.

In its construction stage, the project is due to generate more than 14,600 direct jobs.

Algeria aims through this project to be able to export annually fertilizer quantities worth $2 billion, and gradually manage to increase its phosphate and natural gas reserves through the establishment of structured transformation and wealth-generating industry, which would pave the way for Algeria to become the third largest exporters of fertilizer in the world.