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Construction to start on $1bn Algerian steel project

2 November 2023

Land has been cleared and construction is expected to start before the end of the year for the Bechar steel complex as part of the wider Gara Djebilet industrial project in Algeria.

The Gara Djebilet project is estimated to be worth between $7bn and $10bn. It includes developing the existing Gara Djebilet iron ore mine and related steel-making infrastructure.

Abad Bouziane, director of industry at Algeria’s Ministry of Industry & Pharmaceutical Production, said significant resources had been directed towards the project.

“The start of the implementation of this important industrial project, which will have a very significant contribution to the  economic and social development of the provinces of Bechar and Tindouf, is expected before the end of the current year, and is the subject of intense technical and administrative preparations,” he told the state-owned Algeria Press Service.

 “Currently, we have completed the entire preparatory phase for the effective start of work to realise this industrial project at the new industrial zone of Toumiat, located 40km north of the city of Bechar.”

The steel complex is estimated to be worth $1bn. A Chinese consortium, CMH, and Algeria’s National Iron & Steel Company (Feraal) are implementing the project.

The CMH consortium consists of three Chinese enterprises:

  • MCC International
  • Sinohydro
  • Hunan Shengshi Sunshine Technology

An electricity substation and natural gas storage facilities are being constructed as part of the project, as well as infrastructure to supply water to the project.

Significant rail infrastructure will also be developed as part of the project. The planned railway will be connected to the Bechar-Oran railway line to transport the complex’s products to the port of Arzew.

The Gara Djebilet mine was commissioned in July 2022 with plans to produce 2 million tonnes a year (t/y) by 2026.

Officials have said they want to boost this to 50 million tonnes of iron ore annually by 2040.

Gara Djebilet is understood to hold the world’s largest iron ore reserves, with an estimated 3.5 billion tonnes at the location, of which around 1.7 billion tonnes are available for exploitation.

The Bechar steel plant is expected to become Algeria’s largest steel complex when completed.

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Wil Crisp

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