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Algeria to accelerate Annaba phosphate port expansion

Created at 13 Jul · 4:06 PM1 source↑ Market-relevant
IN SHORT

Algeria is deploying additional workers and equipment to its Annaba phosphate port expansion project, aiming for completion by the first quarter of 2027. The project is part of the Integrated Phosphate Project (IPP), a partnership between Sonatrach and Sonarem.

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Key Numbers

Q1 2027Annaba port expansion completion target
80,000tship capacity for new quay
900,000 t/yrSouk Ahras facility capacity
3mn t/yrpotential phosphate rock demand
1mn t/yrSomiphos expansion target
1.5mn t/yrSomiphos current capacity
1mn t/yrSomiphos supply agreement with Indonesia

Who's Involved

Algeria's works and infrastructure ministry
announced accelerated deployment of workers and equipment for port expansion
Sonatrach
state-owned energy company and partner in Integrated Phosphate Project
Sonarem
state-owned mining firm and partner in Integrated Phosphate Project
Somiphos
Sonarem subsidiary and phosphate rock producer
Pupuk Indonesia
state-owned fertilizer group with supply agreement

↳ Why This Matters

The accelerated expansion of the Annaba port and the broader Integrated Phosphate Project are crucial for Algeria to boost its phosphate rock and fertilizer exports, enhancing its logistical competitiveness and potentially increasing its share in the global fertilizer market.

Key facts

  • Algeria is accelerating its Annaba phosphate port expansion project.
  • The project aims for completion by the first quarter of 2027.
  • A deepwater quay capable of handling 80,000t ships is being built.
  • The expansion is part of the Integrated Phosphate Project (IPP), a joint venture between Sonatrach and Sonarem.
  • The IPP includes phosphate deposit development and a phosphoric acid, sulphuric acid, and ammonia facility.
  • The Souk Ahras facility will produce 900,000 t/yr of P2O5.
  • Somiphos plans a 1mn t/yr expansion at its Djebel Onk mine by mid-2027.
  • Somiphos has an agreement to supply phosphate rock to Indonesia.

Algeria is intensifying efforts to complete the expansion of its Annaba phosphate port, with additional workers and equipment being deployed this month and next. The project is now slated for completion by the first quarter of 2027, according to the country's works and infrastructure ministry.

The ministry stated that the workforce at the Annaba port expansion will be doubled and reinforced with more machinery to expedite progress and ensure timely delivery. The core of the expansion involves constructing a deepwater quay designed to accommodate ships with a capacity of up to 80,000 tons, aiming to enhance the logistical capabilities for Algeria's phosphate rock and fertilizer exports.

This port development is a key component of Algeria's Integrated Phosphate Project (IPP). The IPP is a collaborative initiative between the state-owned energy company Sonatrach and the state-owned mining firm Sonarem. It encompasses the development of phosphate deposits in Bled El Hadba and the establishment of facilities for phosphoric acid, sulphuric acid, and ammonia production in Oued Keberit, located in Souk Ahras province. The government announced last month that the IPP is expected to commence production in the first quarter of 2027, aligning with the port expansion's readiness for initial phosphate shipments.

Argus analysts estimate that the Souk Ahras phosphoric acid production facility will have an annual capacity of 900,000 tons of P2O5, requiring approximately 3 million tons of phosphate rock annually. The Bled El Hadba mine, which is already operational and accumulating stock, will serve as the supplier for the Souk Ahras facilities. Furthermore, Somiphos, a subsidiary of Sonarem and an Algerian phosphate rock producer, anticipates completing a 1 million ton per year expansion at its Djebel Onk mine by mid-2027. Currently, its phosphate rock capacity stands at around 1.5 million tons per year. Following this expansion, Somiphos is expected to supply phosphate rock to Indonesia, based on a January agreement for up to 1 million tons annually with the state-owned fertilizer group Pupuk Indonesia.

Frequently asked questions

The main goal is to build a deepwater quay capable of handling 80,000t ships to strengthen the logistical competitiveness of Algerian phosphate rock and fertilizer exports.

The IPP is a partnership between state-owned energy company Sonatrach and state-owned mining firm Sonarem.

The IPP is scheduled to enter production during the first quarter of 2027.

Somiphos, a Sonarem subsidiary, is expanding its Djebel Onk mine, aiming for a 1mn t/yr capacity increase by mid-2027, and has an agreement to supply phosphate rock to Indonesia.

What Happens Next

01Additional workers and equipment to be deployed this month and next.
02Project completion targeted for Q1 2027.
03IPP scheduled to enter production in Q1 2027.
04Somiphos to complete Djebel Onk mine expansion by mid-2027.

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How It Developed

Additional workers and equipment will be deployed to Algeria's Annaba phosphate port expansion project.
The project's workforce will be doubled and reinforced with additional machinery and equipment.
The project centers on building a deepwater quay to handle 80,000t-capacity ships.
The port expansion is part of Algeria's Integrated Phosphate Project (IPP).
The IPP includes development of phosphate deposits and a phosphoric acid, sulphuric acid and ammonia facility.
The IPP is scheduled to enter production in Q1 2027, coinciding with the port expansion completion.
The Souk Ahras facility will have a capacity of 900,000 t/yr of P2O5.
Somiphos expects to complete a 1mn t/yr expansion at its Djebel Onk mine by mid-2027.

Sources

T1
Algeria to accelerate Annaba phosphate port expansionArgus Media

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