Tebboune Accelerates Key Algerian Mining, Infrastructure Projects Ahead of March Deadline
Image: El Mawkie
Takeaway
The focus on mining and infrastructure reflects Algeria's drive to diversify away from hydrocarbons. International investors should watch the Gara Djebilet mine output and Trans-Saharan trade volumes as indicators of Algeria's success in these sectors. Monitor companies like Sonatrach, Feraal, and Tosyali Holding for opportunities and potential supply chain shifts.
President Abdelmadjid Tebboune chaired a working meeting on March 5, 2026, to assess the progress of several major national projects, including the Eastern Mining Line, the phosphate mine and its associated units, and the Oued Amizour zinc extraction project. The meeting focused on ensuring these projects are ready for effective exploitation by the end of March. The Trans-Saharan Highway and the Algiers-Tamanrasset railway line were also reviewed during the meeting.
These projects are part of Algeria's broader strategy to diversify its economy and reduce its reliance on hydrocarbons. The development of the mining sector, in particular, is seen as a key driver of economic growth and job creation. The government has implemented policies to attract foreign investment in the mining sector, including easing capital constraints on investments in mining operations. This follows Law No. 25-12 of August 3, 2025, governing mining activities, which aims to modernize the legal framework and encourage private investment.
The mining projects under review include the Gara Djebilet iron ore mine, which is connected to the cities of Tindouf and Bechar by a 950-kilometer railway line built in collaboration with China Rail Construction Corp. The first shipment of iron ore from the Gara Djebilet mine arrived at the Tosyali Algérie steelworks in Oran on February 2, 2026. The Tala Hamza Zinc Project, a joint venture between Terramin Australia and Algerian state-owned companies, has a mineral resource of 53.0 million tonnes at 5.3% zinc and 1.3% lead. The project is expected to produce an average of 129,300 tonnes per annum (tpa) of zinc concentrate and 26,000 tpa of lead concentrate over a 21-year mine life.
The completion of the Trans-Saharan Highway is crucial for facilitating trade and regional integration among six African countries: Algeria, Chad, Mali, Niger, Nigeria, and Tunisia. Algeria has invested significantly in the highway, with its 2,400-kilometer section fully completed. The highway spans approximately 4,500 kilometers from Algiers to Lagos. The railway line between Laghouat – Ghardaïa – El Meniaa is under construction to improve links between the center and south of the country.
Investors should monitor the progress of these projects, particularly the mining ventures, as they are expected to significantly impact Algeria's economic diversification efforts. The government's commitment to launching these projects by the end of March suggests a strong push to meet stated deadlines. Any delays could signal potential challenges in the execution of Algeria's broader economic strategy. The target is to ship up to 3 million tonnes of ore from the Gara Djebilet mines by the end of 2026, increasing to an annual production of 50 million tonnes by 2040.