A new railway line with a length of 950 kilometers has been put into operation in Algeria. It will ensure the transportation of iron ore from the large Gara Jebilet deposit, which will be part of the strategy to diversify the country’s economy.
Algerian President Abdelmadjid Tebboune officially opened a new railway line built jointly with Chinese partners. The highway connects the Gara Jebilet field, located in the western desert near the border with Morocco, with the cities of Tindouf and Bechar.
This event paves the way for the start of industrial development of one of the largest in the country iron ore reserves, the development project of which has been discussed for decades. From the mine, raw materials will be supplied to the steel complex in Oran on the Mediterranean coast.
Construction was carried out by Algerian state-owned companies together with China Rail Construction Corp. The Algerian state mining company Sonarem, through its subsidiary Feraal, and the Chinese Sinosteel are participating in the wider project to develop the deposit.
The launch of the line is part of Algeria’s plans to develop its own mining industry. The country, a major gas supplier to Europe, is seeking to reduce its economy’s dependence on oil and gas sector, which traditionally accounts for more than three-quarters of export earnings.
New transport infrastructure will allow Algeria to begin developing significant mineral resources. This is an important step in a diversification strategy aimed at creating new sources of government revenue and reducing exposure to fluctuations in energy prices.
Source: Bloomberg News
