Ambitious expansion plan for the exploitation of non-ferrous metals
MINING

Though Algeria is best known for its oil and gas, the country is endowed with a rich variety of mineral resources, many of which have yet to be tapped. Mineral exploration is in the hands of the National Bureau for Geological and Mineral Research (ORGM). But since 1983, the exploitation of non-ferrous metals has been the responsibility of a public enterprise called ENOF. In 1990, it was turned into a joint stock company, with its headquarters in Algiers. It has about 3,000 employees.

ENOF produces lead concentrate, zinc concentrate, mercury, barite, bentonite and bleaching earth, calcium carbonate, kieselguhr, kaolin, feldspar, dolomite and aggregates at 19 different mines strung out across the north of Algeria, from near the Moroccan border over to the frontier with Tunisia. It also holds shares in the gold-mining company ENOR. About 10 percent of ENOF’s total production is exported, mainly to Tunisia and Europe, notably Italy. Annual turnover is currently around $40 million.

Since 1999, the company has been undergoing major restructuring, with the twin aims of improving performance and increasing profitability. This has led to the creation of six subsidiaries, specializing in particular products. “This means we have one only dealing with barite, another with bentonite, another with kaolin and so on,” explains ENOF’s CEO, Abderrahmane Tahrat.

“These six businesses have got quite an ambitious development program,” he adds. “For example, the barite company plans to open a new barite mine at Bechar, which represents a significant investment. We also have schemes to set up two new bentonite plants, at Mostaganem and Mghniyya. A third project is to open a kieselguhr plant at Mascara. We hope to make all of these investments a reality with the help of foreign partners.”
Indeed, the considerable amounts of money needed to maximize the exploitation of Algeria’s mineral resources are far beyond the country’s own financial capacities. ENOF hopes that the willingness overseas companies have shown to participate in Algeria’s hydrocarbons sector will be repeated here. Already, the company has opened its capital up to both national and international participation. And under the revised mining code now in operation, as Mr. Tahrat stresses, there is nothing to stop foreign partners becoming majority stakeholders.

Though money is vitally important, it isn’t everything. “We are actually looking for partnerships of three kinds,” says Mr. Tahrat. “Finance, technology and marketing. To give an example of what I mean by marketing, we intend to set up a plant to produce about 100,000 tons of feldspar, but the Mediterranean market is already saturated. So any future partner would need to bring us new market share, as well as helping out with marketing.”
In most cases, the United States is unlikely to provide a market for Algeria’s non-precious metals, as freight costs are so high. “But we are interested in Americans coming to Algeria to invest, because they are specialists in the field,” says Mr. Tahrat. “In fact, a couple of years ago, we were in discussion with an American partner regarding barite production, though we weren’t able to bring things to a conclusion because of a slowing down in the market.”

In particular, ENOF has highlighted five projects for which it is keen to find a foreign partner. The aforementioned barite production is one. In two other cases, the company wants to move plants currently located in cities to the mining areas themselves. A fourth scheme involves a plant for processing carbonate and the fifth is to boost kieselguhr production for export. “We want to make those five projects happen as soon as possible,” says Mr. Tahrat.