Algeria has turned to China to reopen Gara Djebilet, the largest iron ore deposit in North Africa, marking a key step in the country’s efforts to diversify its economy and expand its mining sector.
The railway to the Gara Djebilet deposit was officially inaugurated by President Abdelmadjid Tebboune on Sunday, enabling large-scale shipments from the site, Business Insider Africa reported.
Discovered in 1952, Gara Djebilet remained largely dormant for decades due to its remote location and high processing costs.
The deposit, located in Algeria’s western desert near the Moroccan border, is estimated to contain around 3.5 billion tonnes of iron ore, with roughly 1.7 billion tonnes considered exploitable using current technology, making it the largest iron ore deposit in Algeria and North Africa.
The first shipment of 1,450 tonnes of iron ore from Gara Djebilet was transported on Tuesday from Tindouf province.
Freight cars carried the ore to Bechar province for initial processing before it is sent to the Tosyali complex in Bethioua, Oran province.
During the inauguration, President Tebboune described the project as “one of the largest strategic projects in the history of independent Algeria.”
The mine is expected to produce 4 million tonnes per year in its initial phase, with production projected to reach 12 million tonnes annually by 2030, according to the state-owned Feraal Group, which manages the site.
In the long term, output could reach 50 million tonnes per year, significantly cutting Algeria’s reliance on imported iron ore and saving an estimated $1.2 billion annually.
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The railway, constructed by Algerian state-owned companies in partnership with China Railway Construction Corporation (CRCC), connects Gara Djebilet to Tindouf and Béchar, then links to existing tracks leading to the Mediterranean coast and the port city of Oran.
Oran hosts a major steel complex operated by Turkey’s Tosyali Holding, which will process part of the mine’s output.
Mining operations are led by Algeria’s state group Sonarem through its iron and steel subsidiary Feraal.
China’s Sinosteel provides technical expertise and builds processing facilities to treat the high-phosphorus ore, while Tosyali participates through joint ventures focused on iron concentrate and steel production.
Since industrial ramp-up began in 2022, Algeria has extracted more than 250,000 tonnes of ore during pilot operations.
Revenue so far has been limited, with most output used for testing, stockpiling, and domestic trials rather than international sales.
Once the railway and processing facilities are fully operational, authorities estimate annual output could reach 30–40 million tonnes, generating billions of dollars in export revenue and supplying steelmakers in Europe, Asia, and the Middle East.
For Algeria, the Gara Djebilet project is central to reducing reliance on oil and gas, which account for more than three-quarters of export earnings and roughly half of state revenue.
With Chinese support, Algeria aims to transform one of North Africa’s largest iron ore deposits into a strategic driver of industrial growth, job creation, and economic diversification.
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Image Credit: Business Insider Africa
