Algeria pins hopes on giant iron mine

Algeria expects to halt iron imports and become a pure exporter of the metal after one of the world’s largest iron mines comes on stream in early 2026.

Gâra Djebilet mine in western Tindouf province contains nearly 3.6 billion tonnes of iron ore, of which at least 1.7 billion are recoverable with current technology, the ministry of energy and mining said in a report.

The gas-rich North African Opec member has been heavily reliant on iron imports in the absence of sufficient mine investments and amid high domestic demand.

Algeria is also developing smaller mines in other regions containing phosphate, zinc and lead within a new scheme to expand its non-hydrocarbon sector.

“The mining sector in Algeria is still very small, contributing only around 1 percent to GDP… but it is poised for a big increase after Gâra Djebilet and other mining projects come on stream,” said Jamaluddin Choutri, information director at the ministry.

“We expect Gâra Djebilet to start production of 4 million tonnes per day in the first quarter of 2026… production will later rise to 10 million tonnes and this will allow Algeria to start exporting iron for the first time,” he added in local press comments.

China’s Sinosteel company is building a plant at Gâra Djebilet to process iron ore at a cost of nearly $800 million after it won the contract last year.

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Algerian officials said early this year there is a plan to invest $7-10 billion to develop Gâra Djebilet.

The iron mine straddles an area of more than 125 million square metres and is one of the world’s largest, the ministry said.

In August, Algeria approved a new law to open its mining sector to foreign investors as part of a drive to tap its mineral wealth and diversify its hydrocarbon-reliant economy.

Algeria hopes that plans to expand its oil and gas industry along with the development of its mines and other sectors will help fund a persistent budget deficit, which is projected at nearly $40 billion in 2026.