Exploitation project of Gara Djebilet iron mine arises interest of many foreign groups, here are details!
BY: Hana Saada
ALGIERS- The exploitation project of the Gara Djebilet iron mine in the wilaya of Tindouf arouses the interest of many foreign groups with a view to establishing partnership projects and joint ventures, according to the CEO of the national company of iron and steel (Feraal), Ahmed Benabbas.
“Many Arab, European and Asian countries, including Japan, China and Turkey, “expressed their desire to establish partnerships” within the framework of the Gara Djebilet mining megaproject,” said the CEO of Feraal, during a program broadcast on national radio.
The same official mentioned, in the same context, an important partnership which will be concretized by the end of the current year with a large Chinese group for the creation of a joint venture dedicated to the realization of a project for export to China.
In addition, he said, discussions are also underway with Algerian Qatari Steel (AQS) of Bellara, with a view to supplying it with steel raw material. And to recall, in this wake, the agreement entered into force, last Thursday with the Tosyali steel complex in Bethioua in Oran, planning the launch of a concentrate production unit of iron ore in the wilaya of Béchar.
This agreement, he specified, defines the modalities to be undertaken for the creation of a Feraal-Tosyali joint venture next September, while guaranteeing the necessary conditions to be established so that the company directly begins the realization of a first factory which will be located in the wilaya of Béchar.
According to the details of Tosyali officials, this unit would produce high-end steels, such as; flat steels, hot and cold rolled steels and galvanized steel, which would help improve integration rates in some important sectors, such as those of the automotive industry and household appliances.
A strategic nature
The exploitation of the Gara Djebilet mine is of a strategic nature, not only for the development of the steel industry in Algeria, but also to promote exports, as well as the realization of structuring projects in various fields, in particular those related to the railway network and the manufacture of containers and pipelines.
Last August, it should be remembered, the National Iron and Steel Company announced the extraction of a first quantity of iron ore, estimated at 1000 t. For its first phase of operation, from 2022 to 2025, Feraal plans a production capacity varying between 2 and 3 million tonnes of iron ore, before moving to a production level ranging from 40 to 50 million tonnes per year.
This project will, thus, secure the supply of national metallurgy and steel factories (El-Hadjar, Tosyali, AQS, etc.) in raw materials, while creating some 3,000 jobs, according to Feraal officials.
Gara Djebilet is considered one of the largest mines of iron worldwide, with reserves estimated at more than 3 billion tons, of which 1.7 billion exploitable tonnes. Its development will allow Algeria to place itself as a leader in the steel and metallurgical industry in Africa, as well as strengthen its non-hydrocarbon exports, especially as strong demand in the iron ore induces strong changes in its price on the world market.
