Algeria signed a deal worth $6 billion with China to establish a phosphate plant on November 26, Reuters reported.
The phosphate plant will be a joint project between the Algerian state-owned Sonatrach and Chinese conglomerate CITIC and is expected to generate around $1.9 billion each year.
Sonatrach will own 51% of the plant and the CITIC will hold the other 49%.
The deal was signed by the Algerian Sonatrach CEO Abdelmoumen Ould Kaddour and Chairman of CITIC Construction Chen Xiaojia, in the presence of Algerian Prime Minister Ahmed Ouyahia.
“The plant will come online in 2022, and it will create 3,000 jobs,” Kaddour told reporters in televised comments during the signing ceremony.
The plant, to be located in the Algerian region of Tebessa, represents a major step for Algeria to expand its economy and lessen its dependency on hydrocarbons, which account for 95% of the country’s export revenue and 60% of its budget revenue.