Algeria Invests $750 Million in Gara Djebilet Iron Ore Project to Boost Production
Image: Rass El Mal
Takeaway
The $750 million investment in Gara Djebilet signals Algeria's commitment to diversifying its economy beyond hydrocarbons. International investors should monitor the progress of the FERAAL-CMH partnership and the operational efficiency of the new railway, as these factors will determine the project's long-term viability and impact on Algeria's steel industry and export potential.
Algeria is making significant strides in the Gara Djebilet iron ore project with an investment exceeding $750 million aimed at increasing concentrated iron production and strengthening the iron and steel industry. The project is part of a national strategy to develop the mining sector and reduce reliance on imports. On March 31, 2026, the Director-General of the Algerian Agency for Investment Promotion (AAPI), Omar Rekkache, chaired a working meeting in Algiers dedicated to monitoring the progress of the Gara Djebilet iron ore mine development, recognizing it as one of Algeria's strategic structuring projects.
The Gara Djebilet mine, located 180 km from Tindouf near the Algerian-Mauritanian border, is one of the largest iron ore deposits in the world. The mine was discovered in 1952 by French geologist Pierre Gevin. The project aims to shift Algeria away from being a raw material exporter towards industrial value creation and economic diversification. The mine's exploitation was delayed for years due to the ore's high phosphorus content, which requires a dephosphorization process.
The Algerian National Iron and Steel Company (FERAAL) and the Chinese consortium CMH signed a partnership agreement to jointly develop the Gara Djebilet iron ore mine. The project targets an initial iron ore production capacity of 2 million tons per year by 2026, increasing to 50 million tons by 2040. The Gara Djebilet deposit extends over 131 km2, with exploitable reserves estimated at 3.5 billion tons of ore containing 58.57% iron.
The development of Gara Djebilet is expected to benefit Algeria by reducing its dependence on imported iron ore and saving an estimated $1.2 billion annually. The project also includes the construction of a 950-kilometer railway line connecting Gara Djebilet to Tindouf and Bechar, facilitating the transport of iron ore to northern ports and industrial facilities, including the Tosyali Holding steel complex near Oran. The railway line was built in cooperation with China.
Algeria plans to commission a mining and processing plant for iron ore from the Gara Djebilet deposit by the end of April 2026, managed by Sonarem, with a processing capacity of up to 4 million tons of ore per year. The first shipment of iron ore from Gara Djebilet, amounting to 1,450 tonnes, was transported from Tindouf province to Bechar province for initial processing. 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.