Law n°14-05 of 24 Rabie Ethani 1435, dated 24 February 2014, regarding mining law (“Mining Law”) was published recently, in the Journal Officiel n°18 of the Republic of Algeria. The Mining Law replace Law n°01-10 of 11 Rabie Ethani 1422, dated 3 July 2001, as amended and supplemented, on minin law (“Former Mining Law”).

To ensure a better use of mining resources, the Mining Law states expressly that the granting of the mining permit is subordinated to sufficient technical and financial capabilities to carry out the mining research and operation works and undertake its obligations under the Mining Law and its implementing regulations.

A provision to improve investments is included in the Mining Law. In fact, the Mining Law exempt activities of geological infrastructures, prospecting and mining operation, performed by the mining permit holder or for its account, from value added tax on:

  • Capital equipments, products and materials, intended to be allocated directly and permanently to these activities; and
  • Services provided in the framework of these activities.

One of the key features in the Mining Law is the setting up of two new national Agency, with a legal personality and financial autonomy that will support the State in the mining sector:

  • The « agence du service géologique de l’Algérie » (« ASGA ») in charge of the geological infrastructures. As part of its mission, the Agency carries out the monitoring and the follow up of the resources and mine reserves accounting.
  • The « agence nationale des activités minières » (« ANAM ») in charge of the management of the mining heritage and monitoring of mining activities, including follow up and monitoring of research lconnected to operation.