Algeria has officially launched a major industrial initiative to revive the Gara Djebilet iron ore mine, the largest deposit of its kind in North Africa, through a strategic partnership with Chinese firms and key international stakeholders. This project marks a significant step in Algeria’s ongoing efforts to diversify its economy and build a robust mining sector beyond hydrocarbons.
Unlocking a Vast Mineral Resource
The Gara Djebilet deposit, first discovered in 1952, holds an estimated 3.5 billion tonnes of iron ore, with approximately 1.7 billion tonnes considered commercially exploitable with current technology. Its remote location in the western Algerian desert near the Moroccan border and the technical challenges of processing high‑phosphorus ore delayed its development for decades.
Railway Infrastructure as a Game Changer
A cornerstone of the project is the newly inaugurated 950‑kilometre railway line linking Gara Djebilet with major industrial and export hubs in northern Algeria. The line, financed by the Algerian state and constructed in partnership with the China Railway Construction Corporation (CRCC), connects the mine to Béchar and onward to the Mediterranean port city of Oran. The rail corridor is expected to dramatically improve logistical efficiency, enabling bulk transport of ore to processing facilities and export terminals.
During the inauguration, President Abdelmadjid Tebboune described the railway project as “one of the largest strategic projects in the history of independent Algeria,” underscoring its importance to national development.
Early Production and Industry Linkages
Pilot mining operations began in 2022, and since then, Algeria has extracted over 250,000 tonnes of ore for testing and stockpiling. The first commercial shipment, around 1,450 tonnes, was transported from the Tindouf region to Bechar for initial processing before being sent to a steel complex in Bethioua near Oran.
Strategic Partnerships and Technical Expertise
The project is driven by Algeria’s state‑owned Feraal Group, through its subsidiary Sonarem, with critical support from international partners. China’s Sinosteel provides technical expertise and oversees processing facilities designed to treat the mine’s high‑phosphorus ore, while Turkey’s Tosyali Holding operates a major steel production complex that will process a significant portion of the ore.
Scaling Up Production and Economic Impact
Initial forecasts estimate that the mine will produce about 4 million tonnes of iron ore annually during its first operational phase. Production is anticipated to expand to 12 million tonnes per year by 2030 and could reach as much as 50 million tonnes annually in the longer term. Increased output is expected to significantly reduce Algeria’s reliance on imported iron ore and save up to $1.2 billion annually in import costs.
Beyond Mining: Economic Diversification
The reopening of Gara Djebilet aligns with Algeria’s broader strategy to diversify its economy, which remains heavily dependent on oil and gas sectors that account for over three‑quarters of export earnings and roughly half of government revenue. Expanding the mining and metallurgical industry is expected to generate jobs, stimulate local manufacturing, and attract further foreign direct investment.
Looking Ahead
As infrastructure and processing facilities continue to scale up, the Gara Djebilet project is poised to transform Algeria into a significant player in the global iron ore market. Its integration into international supply chains could bolster Algeria’s industrial base, strengthen its export capacity, and help sustain long‑term economic growth, according to Business Insider Africa.
