Steel and Aluminum: The Malaysian Lion Injects $6 Billion into Algerian Mining Sector
BY: Hana Saada
ALGIERS – In a remarkable move that heralds a new era of international investment in Algeria’s mining potential, the Lion Group, a prominent Malaysian conglomerate, has unveiled its plans to invest a substantial $6 billion in the nation’s mineral-rich landscape. This strategic investment underscores the Lion Group’s commitment to partnering with Algeria for mutually beneficial growth while creating significant employment opportunities.
A Beacon of Hope for Algeria’s Economy
As various global players have shown increasing interest in Algeria’s mining prospects, the Lion Group’s $6 billion pledge is set to invigorate the country’s ambitions to leverage its mineral wealth on the global stage and diversify its foreign currency resources. Omar Rekkache, the Managing Director of the Algerian Investment Promotion Agency, announced this pivotal development following discussions with Tan Sri Datuk Seri Utama William Cheng, the CEO of the Lion Group.
The Lion Group’s proposed projects encompass a variety of transformational initiatives aimed at fortifying Algeria’s position in the international market. These ventures are anticipated to generate approximately 10,000 jobs, fostering economic growth and enhancing the quality of life for many Algerians.
Bold Initiatives for a Prosperous Future
Key among the Lion Group’s projects is the transfer of a hot briquetting iron production unit with a capacity of 1.7 million tonnes per year from Malaysia to Algeria. Additionally, the conglomerate intends to construct a new flake production unit capable of producing 4 million tonnes annually. This initial phase of investment is estimated at $3.7 billion and is projected to stimulate local industries and boost manufacturing capabilities.
The second phase of the Lion Group’s Algerian investment portfolio encompasses the establishment of an aluminum alloy production project and the construction of a high-capacity power plant. These measures are designed not only to support energy self-sufficiency but also to contribute to the creation of large-scale industrial zones, fostering an environment of innovation and progress.
Strategic Location and Development
While the precise location for these groundbreaking projects is yet to be confirmed, indications point to the Gara Djebilet-Oran axis via Béchar. This region, poised to become a steel hub, will likely witness the transformation of iron ore into valuable products. Notably, a railway line spanning 980 km, connecting Tindouf to Béchar, is in the works to facilitate the transport of raw materials. With the first 200 km section projected for completion by the end of the year, this infrastructure is set to bolster the project’s efficiency and overall impact.
Algeria’s Minister of Public Works, Lakhdar Rakhroukh, emphasized the importance of this railway project during a coordination meeting focused on monitoring the progress of various railway line initiatives.
A Stepping Stone to Progress
The Lion Group’s investment exemplifies the international recognition of Algeria’s potential as a hub for mining and industrial development. This significant injection of capital stands to not only elevate Algeria’s economic standing but also transform its industrial landscape. As the nation strides confidently toward a future of prosperity, the Lion Group’s partnership represents a beacon of hope, echoing a resounding message of progress and growth for Algeria and its people.
