Indonesian fertiliser giant eyes Algerian phosphate as it looks to own mines abroad
Pupuk Indonesia, the largest fertilizer producer in Indonesia, is studying investments in phosphate and potash mines abroad, with Algeria among four countries under consideration, a senior executive said at a mining conference in Jakarta on 3 November. No agreement with Algeria has been announced.
Dade Sanja Wijaya, the company's vice-president for strategy, said Pupuk is the only major fertilizer producer in the world that owns no phosphate or potash mines. The group is weighing either state-to-state arrangements or direct partnerships between companies, and is also looking at Belarus, Canada and Russia. It plans to raise its NPK fertilizer capacity from 4.6 to 5.9 million tonnes a year by 2030, which would lift its phosphate imports from 1.8 to 2.3 million tonnes.
The interest builds on a memorandum of understanding signed in Algiers on 20 January between Pupuk and Somiphos, the Algerian phosphate mining company, a subsidiary of the state mining group Sonarem. The text covers possible supplies of Algerian phosphate, joint feasibility studies and cooperation on phosphate processing. Indonesian media reported at the time that the supply could reach up to one million tonnes a year.
Algeria has the resources to attract such partners. The Bled El Hadba deposit in Tébessa holds about 840 million tonnes of exploitable reserves, and the project plans to extract 10.5 million tonnes of raw phosphate a year, yielding 5.5 million tonnes of marketable product. The first phase of the Oued Keberit fertilizer complex, in Souk Ahras, is expected to produce about 2.4 million tonnes of phosphate fertilizers and 570,000 tonnes of nitrogen fertilizers a year.
A 422 km mining railway is to link Bled El Hadba to the port of Annaba, where President Abdelmadjid Tebboune has set March 2027 as the deadline for the first shipment.
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