Algeria’s President Abdelmadjid Tebboune recently inaugurated the 950-kilometre Béchar–Tindouf–Gara Djebilet railway, which flagged off the first freight train carrying iron ore from the Gara Djebilet mine.
The inaugural rail shipment of 1,450 tonnes of iron ore from the Gara Djebilet mine was far more than a logistical event; it signalled the operational launch of one of Algeria’s largest post-independence industrial projects and underscored the nation’s strategic pivot from merely possessing resources to becoming an industrial power. The newly completed 950-kilometre railway provides the vital connectivity that transforms the previously isolated deposit with its massive 3.5 billion tonnes of reserves into a commercially viable asset, integrating the remote southwest into a national production system that links extraction, processing, and export ports.
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With exploitable reserves of 1.7–2.0 billion tonnes, Gara Djebilet is a deposit of global significance. Its production trajectory is projected to escalate from an initial 2–4 million tonnes annually to a peak of 40–50 million tonnes by 2040, which would position Algeria among the world’s top-tier iron ore producers. The railway’s completion is the linchpin for this scale, enabling the economic transport of ore to industrial hubs and facilitating the mine’s evolution from a dormant resource into a cornerstone of the national economy.
However, the project’s success hinges on overcoming the ore’s high phosphorus content, a technical challenge that Algeria is addressing through international technology partnerships and on-site beneficiation plants. This focus on mastering complex processing transforms a geological constraint into a strategic industrial capability, aiming not only to fuel domestic steel production but also to establish Algeria as a regional leader in mineral technology and value addition.
In 2025, Algeria’s economy was at a pivotal juncture, with its nominal GDP estimated between US$278 and $288 billion and growth projected at 3.4–3.8%. This growth was primarily driven by a robust non-hydrocarbon sector expanding at approximately 5.4%, yet the nation’s overall economic structure remained heavily dependent on fossil fuels, with hydrocarbons accounting for over 75% of total exports and still contributing roughly half of all state revenue.
The Gara Djebilet iron ore project is a strategic response to Algeria’s long-standing vulnerability to volatile oil and gas cycles, positioning itself as a powerful non-hydrocarbon growth engine by reducing import dependency to the tune of $1.2–2 billion annually for iron and steel inputs and generating billions in future export revenue, while also creating an estimated 3,000 direct and 25,000 indirect jobs and spurring critical regional development in areas like Tindouf and Béchar through new infrastructure and services.
The Gara Djebilet deposit, discovered in 1952, remained dormant for seven decades due to colonial neglect, post-independence capital and technology constraints, and the absence of essential transport infrastructure. For years, Algeria’s rational prioritisation of its immediate oil and gas wealth relegated mining to a secondary, underdeveloped role. Its revival in the 2020s marks a deliberate strategic pivot, driven by the recognition that hydrocarbons alone cannot ensure long-term stability and enabled by shifting global steel demand, available Chinese-backed financing, and an expanding domestic industrial base.
This project is not an outlier but the most ambitious expression of Algeria’s broader resource-to-industry strategy, which includes similar integrated complexes for phosphates and zinc. Gara Djebilet distinguishes itself through its colossal scale, the state-backed infrastructure required to unlock it, and its explicit design as a continental-scale industrial anchor. This hybrid model, combining large-scale extraction with domestic processing and state-coordinated logistics, positions Algeria closer to an industrialised resource state than a pure raw material exporter, setting it apart from global peers like Australia and Brazil.
With this project operational, Algeria ascends to a leadership position in African mining. By controlling North Africa’s largest iron ore reserve, deploying a dedicated mining railway, and integrating extraction with domestic steelmaking, Algeria demonstrates a rare capacity for long-term industrial planning. This elevates its standing alongside major mining nations like South Africa and Guinea, while offering a distinct model rooted in state coordination over enclave extraction.
However, formidable risks accompany this ambition, including potential execution delays in ore processing plants, the challenge of maintaining rail infrastructure across harsh desert terrain, exposure to volatile global iron markets, and the need for rigorous governance and cost discipline. The project’s ultimate success hinges on sustained policy consistency and effective management far beyond the ceremonial launch.
