China’s Asia Potash is considering a $1.6 billion investment in Algeria to develop phosphate resources and produce ammonia, urea, and compound fertilizers.

According to Algeria’s state Investment Promotion Agency, the project will rely primarily on natural gas as the main feedstock for production.

The agency said its Director General, Ammar Rekache, met with a delegation from Asia Potash, which specializes in the extraction and processing of mineral resources, particularly phosphate. The Chinese delegation presented a detailed proposal for the project, which the company aims to launch in North Africa.