Capital, Control, and Collateral: Architecture and Investment Economics of Algeria's Mining law

Abstract

Algeria, possessing substantial but historically underexploited mineral wealth, has enacted a transformative legal framework—Law No. 25-12 of 3 August 2025—to overhaul its mining sector. This paper provides a comprehensive analysis of the new mining law, examining its departure from the restrictive regime (Law No. 14-05). The analysis covers key innovations including the abolition of the "strategic substances" monopoly, the introduction of an 80% foreign ownership ceiling for mining exploitation (contrasted with 51% Algerian ownership for quarries), the codification of inventor's rights, enhanced transferability and bankability of mining titles, and stringent environmental governance mechanisms including the creation of a specialized mining police. The paper argues that while the law successfully balances investment attraction with resource sovereignty through mechanisms such as mandatory 20% State participation and preemption right, its effectiveness will ultimately depend upon timely implementing regulations and institutional capacity building. The Algerian model offers a distinctive approach to mining governance that reconciles liberalization with sovereign control, positioning the country as an emerging regional hub for sustainable mining development.