Saipem and CHEC Land Algeria’s Big Phosphate Contracts
Sonatrach and the Algerian Fertilizers Company awarded engineering contracts to Saipem and China Harbour Engineering for a phosphate and fertiliser complex. The post Saipem and CHEC Land Algeria’s Big Phosphate Contracts appeared first on The Rio Times .
Algeria recently announced that it has awarded two major engineering, procurement and construction contracts for its integrated phosphate project. The contracts were signed on August 12 by Sonatrach, the Algerian state-owned phosphate mining company, and the Algerian Fertilizers Company. The deals were signed in Algiers, with Italian company Saipem securing the processing and production facilities contract and China Harbour Engineering Company receiving the port works contract at Annaba.
The Bled El Hadba site is designed to extract 5.5 million tonnes of raw phosphate annually, while the total production capacity is targeted at 3.2 million tonnes per year of phosphate concentrate. Downstream facilities at Oued El Keberit will produce 2.4 million tonnes of phosphate fertilizer and 570,000 tonnes of urea annually, with surplus fertilizer being exported via the Annaba port works.
The Italian company, Saipem, is valued to contribute around €500 million (approximately US$577 million) to the project, though the exact value of CHEC's port contract remains undisclosed.
The expansion of Algeria's phosphate industry is aimed at meeting domestic agricultural demands and generating export volumes. Phosphate is essential for crop growth, and Algeria has substantial deposits in the Tebessa region, although it has yet to convert them into significant fertiliser exports. Minister of State and Hydrocarbons Minister Mohamed Arkab announced that the project aims for enriched phosphate production by the first quarter of 2027, with fertiliser production following in the fourth quarter of the same year.
This expansion aligns with Africa's growing demand for fertilizers, particularly Brazil's dependence on foreign sources. The port contract to China Harbour Engineering Company represents a familiar pattern in which Chinese firms build the logistics for moving African raw materials, while European firms supply the processing technology.
Algeria has been pursuing a strategy to diversify its economy beyond hydrocarbons, with limited success thus far. Phosphate is considered a promising candidate due to the already existing deposits.
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