Algeria Opens 950-km Railway to Gara Djebilet, Dispatches First Iron Ore Shipment
Takeaway
The first ore shipment marks the transition from infrastructure project to active mining operation. Steel commodity traders and mining investors should note Algeria's entry into the global iron ore market. EPC contractors and rail equipment suppliers have a growing opportunity as the mine-to-mill chain scales. Key variables to watch: ore quality test results and off-take agreements with Asian steelmakers.
President Tebboune inaugurated the 950-km Bechar-Tindouf-Gara Djebilet railway on February 1 and dispatched the first trainload of iron ore northward. He described it as "one of the largest strategic projects in the history of independent Algeria."
950 km
Railway length
Bechar to Gara Djebilet
3.5B t
Iron ore reserves
second-largest untapped globally
50M t/yr
Production target
at full capacity
Source: UIC, Algerie Presse Service
The railway connects the Gara Djebilet iron ore deposit in southwestern Algeria to the national rail network. Gara Djebilet holds an estimated 3.5 billion tonnes of reserves, making it the second-largest untapped iron ore deposit in the world after Guinea's Simandou (8.6 billion tonnes). The deposit has been known since French colonial-era geological surveys but lacked the transport infrastructure needed for extraction.
Construction was carried out partly by a Chinese consortium and funded by the Algerian state. The line is designed for heavy freight, capable of handling large ore volumes, while also providing passenger service to remote Saharan communities that previously had no rail access.
World's Largest Untapped Iron Ore Deposits (Billion Tonnes)
The government's plan links the mine to a steel production complex near Oran on the Mediterranean coast. Algeria currently imports several billion dollars' worth of finished steel annually. The mine-to-mill chain is intended to replace steel imports with domestic production.
At full capacity, Gara Djebilet is projected to produce 50 million tonnes of iron ore per year. That volume would place Algeria in the same tier as South Africa among mid-sized global producers. Reaching full capacity will require years of phased expansion and additional capital investment in processing facilities.
The deposit competes for market share with Guinea's Simandou project, backed by Rio Tinto and a Chinese consortium. Both projects target high-grade iron ore demand from Asian steelmakers. The deposit that reaches commercial-scale exports first will have an advantage in securing long-term off-take agreements.
One technical challenge remains. Gara Djebilet's ore has historically shown higher phosphorus content than premium iron ore benchmarks. High-phosphorus ore requires additional processing before it meets steelmaking specifications, which adds cost. The Oran steel complex will need to demonstrate that it can economically process ore at this grade.