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Béchar Steel Complex: Kickoff in “Coming Days”

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BY: Dr. Hana Saada

ALGIERS- Set to capitalize on the Gara Djebilet iron ore deposit, construction works for the Béchar steel complex will commence in the upcoming days, according to Mohamed Sakhri Harami, CEO of the state-owned Sonarem group. The realization of the complex, a result of a partnership between Sonarem and the Chinese consortium CMH, is entrusted to the Sino Steel group. It will be erected in the new industrial zone of Toumiat, spanning an area of 3000 hectares, north of Béchar, which is slated to host the construction site.*

Recently, a team of experts from Sino Steel visited Béchar to finalize preparations for the commencement of construction works. “This visit marks the final step before the launch of this large-scale project,” whose completion is scheduled for the year 2026, coinciding with the start of effective production at the Gara Djebilet iron ore deposit in Tindouf, with a production capacity of 20 million tonnes initially, expected to increase to 40 million tonnes by 2040, as stated by the Sonarem group CEO.

The Béchar complex will play a pivotal role in the development of the steel industry in Algeria in the coming years. With an investment of $1 billion, the complex will not only process 20 million tonnes of iron ore, half of the Gara Djebilet deposit’s production, but also undergo a second phase of expansion.

The first phase of the project aims to process 2 million tonnes of iron ore annually, yielding 1 million tonnes of iron ore concentrate. This will be followed by an expansion phase to achieve an optimal capacity to process 20 million tonnes of iron ore into 10 million tonnes of iron concentrate. Besides iron ore processing, the complex will also produce rails, steel profiles, and railway wagons for transporting iron ore from the Gara Djebilet deposit, whose cornerstone laying ceremony took place in December 2023 by the President of the Republic.

To ensure adequate supply to the new Béchar steel complex and other production plants in the northern region, including Tosyali, a railway project connecting Béchar to Tindouf over a distance of 1000 kilometers is underway. This railway line is also an integral part of the overall project to exploit the mega Gara Djebilet iron ore deposit. The construction of this railway project has been entrusted to the state-owned construction and public works group Cosider and the Chinese CRCC, under the supervision of the national agency for the study and monitoring of railway investment projects. Similar to the Béchar steel complex, the railway line is also scheduled for completion in 2026, marking the beginning of a new era for the country’s steel industry.

In conclusion, the launch of the extraction and transformation of iron ore and the revitalization of the steel industry epitomize Algeria’s aspiration to forge a steel-centric future.

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