BY: Hana Saada
ALGIERS- A groundbreaking partnership agreement was signed between the National Iron and Steel Company (Feraal) of Algeria and the Chinese consortium CMH. The agreement paves the way for the establishment of two joint Algerian-Chinese companies, with the first focused on operating the Gara Djebilet mine in Tindouf and the second dedicated to constructing a complex for transforming iron ore from the mine into semi-finished materials (slabs) in the wilaya of Béchar. This significant collaboration holds great potential for the development of the mining and metallurgical sectors in both countries.
The CEO of Feraal, Ahmed Benabbes, and the president of CMH, Zhou Zhipeng, signed the agreement during a ceremony attended by esteemed individuals such as Mohamed Sakhr Harami, CEO of the public group Manadjim El Djazair “Manal,” Nadjiba Bourenane, Director General of Mines at the Ministry of Energy and Mines, and Mohamed Mokhbi, the wali of Tindouf.
According to the agreement, the Gara Djebilet mine aims to extract 2 million tonnes of iron ore annually by 2026, with a long-term goal of reaching an extraction capacity of 50 million tonnes by 2040. These ambitious targets demonstrate the scale of the project and the potential for significant economic growth in both Algeria and China.
Furthermore, the integrated mining and metallurgical development project holds great promise in terms of reducing carbon emissions and promoting sustainable development in the global iron and steel industry. By leveraging advanced technologies and practices, the project aims to minimize its environmental impact while ensuring efficient production processes.
Mr. Harami emphasized the importance of the Gara-Djebilet mine development project for Algeria’ steel industry. In its initial phases, the project will supply raw materials to meet the demands of the entire Algerian steel sector, which requires substantial quantities. It is worth noting that Algeria imported $1.2 billion worth of iron ore last year, highlighting the significance of these investments. Upon completion in 2025, the project is expected to provide raw materials worth $2 billion, thereby reducing dependency on imports and boosting Algeria’s self-sufficiency in the iron and steel sector.
Regarding employment opportunities, Mr. Harami assured that the majority of the workforce would be Algerian, given the expertise developed by Feraal in raw material extraction. However, as the processing activity requires specialized knowledge, there will be a Chinese workforce involved. Simultaneously, there will be a focus on gradually training Algerians in these techniques, ensuring the transfer of skills and knowledge to the local population.
The collaboration between Algeria and China in the mining and metallurgical sectors represents a significant milestone in bilateral relations. It not only strengthens economic ties but also fosters technology transfer, knowledge exchange, and capacity building. By leveraging their respective strengths and expertise, the two countries are poised to unlock the vast potential of the Gara Djebilet mine and contribute to sustainable development on a global scale.
The successful implementation of this project will not only stimulate economic growth but also have far-reaching environmental benefits. As the world strives to reduce carbon emissions and mitigate the effects of climate change, the collaboration between Algeria and China in developing the Gara Djebilet mine sets a positive example for other nations and industries to follow.
In conclusion, the establishment of two mixed Algerian-Chinese companies for the operation and transformation of iron ore from the Gara Djebilet mine signifies a significant step forward in the mining and metallurgical sectors of both countries. With its vast reserves and ambitious extraction targets, the project holds immense potential for economic growth, job creation, and sustainable development.
