Algeria has turned to China to help reopen and scale up operations at the Gara Djebilet iron ore mine, the largest deposit of its kind in North Africa, as the country accelerates efforts to diversify its economy beyond oil and gas and strengthen its mining and industrial base.
A major milestone in the project was reached with the official inauguration of a new railway linking the remote mine site to Algeria’s industrial and export infrastructure. President Abdelmadjid Tebboune presided over the opening of the rail line on Sunday, clearing a long-standing logistical bottleneck that had prevented large-scale exploitation of the deposit for decades.
Gara Djebilet, discovered in 1952, is located in Algeria’s western desert near the Moroccan border. Despite its size, the deposit remained largely dormant due to its isolation and the technical complexity of processing its high-phosphorus iron ore. Geological estimates put total reserves at about 3.5 billion tonnes, with roughly 1.7 billion tonnes considered exploitable using current technology, making it the largest iron ore deposit in Algeria and across North Africa.
The newly constructed railway was built by Algerian state-owned companies in partnership with China Railway Construction Corporation. It connects the mine to the towns of Tindouf and Béchar before linking up with existing rail networks that run north to the Mediterranean coast and the port city of Oran. Oran is home to a major steel complex operated by Turkey’s Tosyali Holding, which is expected to process a significant share of the mine’s output.
Mining operations at Gara Djebilet are led by Algeria’s state mining group Sonarem through its iron and steel subsidiary Feraal. China’s Sinosteel is providing technical expertise and is involved in building processing facilities designed to treat the high-phosphorus ore, a key challenge that previously limited the project’s viability. Tosyali is participating through joint ventures focused on iron concentrate production and downstream steel manufacturing.
Several Algerian firms, including Cosider Travaux Publics, EPTP Alger, SEROR Est and GCB, have been responsible for civil engineering and railway works, with oversight from ANESRIF, the national agency for railway investment.
Pilot production at Gara Djebilet began in 2022, with more than 250,000 tonnes of iron ore extracted so far. Most of this early output has been used for testing, stockpiling and domestic trials, resulting in limited revenue generation to date. Authorities say the real economic impact will come once the railway and processing facilities are fully operational.
At full capacity, Algerian officials estimate the mine could produce between 30 and 40 million tonnes of iron ore annually. Such output could generate billions of dollars in export earnings while supplying raw material to domestic steelmakers and international markets in Europe, Asia and the Middle East.
The Gara Djebilet project reflects a broader shift across Africa toward linking mineral development with transport and industrial infrastructure, allowing countries to move beyond exporting raw commodities and instead build local processing and manufacturing capacity.
For Algeria, the mine is central to a wider strategy aimed at reducing reliance on hydrocarbons, which still account for more than three-quarters of export revenues and around half of state income. By reopening Gara Djebilet with Chinese technical and logistical support, the government is betting that one of North Africa’s largest mineral assets can become a long-term driver of industrial growth, employment and economic diversification.
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