Africa is a continent full of natural minerals and is home to some of the world’s largest gold reserves. In fact, a number of African countries hold more than a whopping 100 metric tons of the valued metal which contrasts to some of Europe’s wealthiest countries such as Denmark and Finland. According to Trading Economics, both have reserves of under 100 tonnes.
But though there are many African countries boasting a staggering amount of the precious asset, there’s one which leads the way. Algeria is one of the richest countries in Africa. Collecting gold right from the early 2000s, it now has a reserve of over 174 metric tons, which is worth more than $10 billion – equivalent to a staggering £8 billion. The huge gold reserves in Africa can be credited to the fact that you can find around 40% of the world’s natural gold under Africa’s surface.
The gold rich country of Algeria plans to use its gold assets to strengthen the country’s financial security as well as reducing its dependence on foreign currencies. Growing its gold reserves will be easy for Algeria as the majority of it comes directly from its own mines. In the coming years, the country’s gold production is going to dramatically increase.
Algeria has reopened two huge mines – Amesmass and Tirek, both located in the Tamanrasset province, southern Algeria, after a number of the countries mines were inactive for a decade. However, at the end of last year approximately 46 licences were granted to companies, allowing them to begin operations in the gold sector.
According to Africa Daily News, the approval is part of a wider effort to encourage private sector participation in the industry and leverage advanced mining technologies to maximise gold output.
The move will give Algeria a unique advantage in the global market, placing them as a competitive player in the mineral supply chain, as the demand for gold and other minerals across the world continues to rise.
As well as boasting masses of gold, Algeria is home to a number of other natual rescources including iron ore, phosphates, uranium and lead. The oil and gas sector is also described by the Organization of the Petroleum Exporting Countries, as “the backbone” of Algeria’s economy.
Diversifying the country’s economy is another goal for Algeria, as the country is set on becoming a key role in Africa’s resource economy through a combination of mineral reserves and investor-friendly policies.
