Algeria Accelerates Mining Projects: Gara Djebilet and Eastern Mining Line Take Priority
Image: El Mawkie
Takeaway
The development of Algeria's mining sector presents opportunities for international investors and companies in mining, railway construction, and steel production. Companies like Sinosteel and Tosyali are already involved, and further partnerships are expected as Algeria seeks to diversify its economy and reduce reliance on hydrocarbons.
Algeria is prioritizing the development of its mining sector, with a focus on the Gara Djebilet iron ore mine and the Eastern Mining Line. Minister of Public Works and Basic Facilities, Abdelkader Djellaoui, emphasized the importance of expediting the Eastern Mining Line, particularly the 121-km Bouchgouf-Drea section in the wilaya of Guelma, to accelerate national development and ensure the continuity of strategic projects. Prime Minister Sifi Ghrieb also conducted a field visit to Souk Ahras, tasked by President Abdelmadjid Tebboune, to monitor the progress of the Eastern Mining Railway's modernization project.
The Gara Djebilet mine, located 130 km southeast of Tindouf, holds estimated reserves exceeding 3.5 billion tons of iron ore, representing nearly 90% of Algeria's untapped national iron ore potential. The project aims to transform Algeria from an iron-importing country to an iron-exporting one. The mine was discovered in 1952, and the exploitation was formalized on July 30, 2022. A 950-km railway line connecting Gara Djebilet to Béchar has been constructed to overcome logistical constraints. The project aims for an annual production of 50 million tons of iron ore, to be converted into about 25 million tons of marketable products.
The Eastern Mining Line, stretching 422 km from Annaba to Blad El Hadba near Tébessa, is crucial for the phosphate industry. The National Agency for the Study and Monitoring of Railway Investment (Anesrif) is working to double and rectify 297 km of the route, with an additional 152 km about to be launched. The Oued Amizour zinc and lead mine in Béjaïa is another major project, with exploitable reserves estimated at 34 million tons and a projected annual production of 170,000 tons of zinc concentrate and 30,000 tons of lead. President Tebboune indicated that initial drilling operations at the Oued Amizour mine will begin by late March 2026.
The Gara Djebilet project involves Feraal, a subsidiary of Sonarem, and China's Sinosteel. The mine is expected to produce 4 million tonnes per year during the initial phase, with production projected to triple to 12 million tonnes per year by 2030. Long term output could reach 50 million tonnes per year, potentially saving Algeria an estimated $1.5 billion annually in iron ore imports. The first shipment of 1,450 tonnes of iron ore from Gara Djebilet was transported to Bechar for initial processing before being sent to the Tosyali complex in Oran province. The Oued Amizour project is being undertaken by the Algerian-Australian joint venture Western Mediterranean Zinc (WMZ) and China's Sinosteel.
Investors should monitor the progress of the Eastern Mining Line, with phosphate loading at Annaba port expected between late 2026 and mid-2027. The commissioning of a mining and processing plant for iron ore from the Gara Djebilet deposit is planned by the end of April 2026, with a processing capacity of up to 4 million tons of ore per year. Watch for potential partnerships between Sonarem and international companies from the US, India, and China for investment and cooperation in Algeria's mining sector, particularly in Gara Djebilet.