Algeria, Africa’s largest country by area, is taking strategic steps to harness its mineral resources to achieve self-sufficiency and reduce its import bill, by collaborating with Chinese and Turkish companies.
On the 58th anniversary of its mine nationalization, Algeria signed three diverse agreements with international partners to establish two iron factories and develop a zinc and lead mine, representing billions in investments, according to the Algerian News Agency.
In 2022, Algeria enacted a new investment law that includes three-year tax exemptions for investment initiatives in priority sectors.
These sectors include mining and quarries, agriculture, food industry, pharmaceutical industry, petrochemical industries, as well as new and renewable energy.
Algeria ranks fourth among Africa’s largest economies in 2024, with an expected Gross Domestic Product (GDP) of $239 billion, according to the International Monetary Fund.
The national iron and steel company “Feral” (a subsidiary of Sonaram conglomerate) signed a deal with China’s Sinosteel to process iron ore from Gara Djebilet, the country’s most significant iron mine located in Tindouf province, as stated in a release on Friday.
Mohamed Belabbas, the CEO of the Algerian company, told Al Sharq that the new plant will process 4 million tons of iron ore annually, reducing the need to import costly foreign iron ore.
“Feral” plans to develop new mining projects, including a barite mine in Beni Abbes and manganese in the Bechar region, aiming to create new economic value and reach a business volume of $5 billion by 2030.
