Gara Djebilet mine: Feraal/Tosyali joint venture for production of iron ore concentrate
BY: Hana Saada
ALGIERS- The National Iron and Steel Company (Feraal) and the Tosyali steel complex in Béthioua (Oran) signed, on Thursday in Algiers, a Feraal/Tosyali memorandum of understanding on the launch of a joint venture of iron ore concentrate in the wilaya of Bechar.
The memorandum of understanding was signed by the CEO of Feraal, Ahmed Benabbas, and the administrator in charge of the affairs of the company “Tosyali” in Algeria, Alp Topcuoglu, in the presence of the Minister of Energy and Mines, Mohamed Arkab, and the CEO of the mining industrial group Manadjim El Djazaïr (Manal), Mohamed Sakhr Harami, specified the APS agency.
An iron ore concentrate production unit
This agreement relates to the setting up of a joint venture between the two companies for the construction, within less than 24 months, of a joint unit for the production of iron ore concentrate from the mine of Gara Djebilet with a capacity of 500,000 tons/year of iron ore concentrate.
“This protocol essentially aims to prepare all the necessary conditions for the creation of the future joint company as soon as possible”, indicated Mr. Sakhr Harami during a press briefing on the sidelines of the ceremony, specifying that the ore will be transported from Gara Djebilet west by truck pending the construction of the Gara Djebilet-Béchar railway line and the adaptation of the Béchar-Arzew railway line.
Ongoing negotiations with a Chinese company and AQS
The work within the framework of this protocol has started and must continue until September 2023, according to the CEO of Manal, adding that the creation of the joint venture will take place as soon as the Council of State Participations agrees. (CPE).
The same official said that in parallel, the Manal group is currently finalizing negotiations to reach two similar agreements to develop the Gara Djebilet mine, the first with a Chinese company and the second with the Algerian steel company Qatari Steel ( AQS) of Bellara (wilaya of Jijel) in order to carry out the strategic program of valorization of the raw iron at the level of this mine.
Tosyali plans to invest between $120 and $150 million
For his part, Mr. Topcuoglu said that the company “Tosyali” is considering a level of investment between 120 and 150 million dollars, stressing that this new production unit will allow a saving of foreign exchange for Algeria of more than $60 million/year.
This unit will make it possible to produce high-end steels such as flat steels, hot and cold rolled steels, galvanized steel, explained Mr. Topcuoglu, adding that the steels produced will allow automotive and household appliance operators to raise their integration rate.
Tosyali currently consumes 4 million tons/year of iron ore to produce the various steels. With the commissioning of the Béchar production unit, Tosyali will consume 8 million tonnes/year, according to Mr. Topcuoglu, who stressed the need to value local ore to reduce production costs. “The long-term goal is to achieve up to 80% steel production from local iron ore,” he said.
