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Algeria’s largest iron ore mine started production this week amidst hopes it would turn the North African OPEC member into an iron exporter.
Gâra Djebilet mine in the western Tindouf province contains nearly 3.6 billion tonnes of iron ore, of which at least 1.7 billion are recoverable by present technology.
The mine spewed over 1,000 tonnes of iron ore which were loaded aboard the first train to reach the mine last week, the energy and mines ministry said.
The mine started production just days after the gas-rich Arab nation launched a 950-kilometre rail line linking one of the world’s largest iron reservoirs to industrial areas and to export terminals in Algeria.
The ministry said production would gradually rise to peak at around 50 million tonnes per year within the next 15 years, adding that it would meet domestic needs and allow Algeria to export the surplus for the first time.
“Gâra Djebilet is one of the largest mining projects in Algeria’s history...this project aims to develop one of the world’s largest iron ore mines,” the ministry said, adding that the mine contains nearly 90 percent of the country’s untapped iron ore.
China’s Sinosteel company has built a plant at Gâra Djebilet for processing iron ore at a cost of nearly $800 million after it won the contract in 2024.
Algerian officials said last year there is a plan to invest $7-10 billion to develop Gâra Djebilet with a targeted production of 40-50 million tonnes in 2040.
The mine straddles over an area of more than 125 million square metres and is rated as one of the world’s 10 largest iron mines, the ministry says.
In August, Algeria approved a new law to open up its mining sector to foreign investors as part of a drive to tap its mineral wealth and diversify its hydrocarbon-reliant economy.
Algeria hopes that plans to expand the oil and gas industry along with the development of its mines and other sectors will help fund a persistent budget deficit, which is projected at nearly $40 billion in 2026.
(Writing by N Saeed; Editing by Anoop Menon)
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