Algeria Opens Strategic Desert Railway to Untapped Iron Ore Giant

The 1,000-kilometer line to the Gara Djebilet mine is set to slash imports, boost steel ambitions, and reduce reliance on oil and gas revenues.

ALGIERS – In a landmark push to diversify its economy, Algeria inaugurated a nearly 1,000-kilometer strategic railway on Sunday, linking the remote Gara Djebilet iron ore mine in the Sahara Desert to industrial hubs in the north.

President Abdelmadjid Tebboune hailed the project—partly built by a Chinese consortium and fully financed by the state—as “one of the largest strategic projects in the history of independent Algeria.” The railway will transport ore from the southern Tindouf region to Bechar, from where it will move to a steel plant near Oran.

The Gara Djebilet mine is among the world’s largest untapped iron ore deposits. Its initial phase aims to produce 4 million tons annually, scaling up to 12 million tons by 2030, with long-term projections reaching 50 million tons per year. According to the state-run Feraal Group, which manages the site, the operation will save Algeria around $1.2 billion yearly in iron ore imports and position the country as a leading African steel producer.

“The launch of this railway marks a new chapter in Algeria’s industrial independence,” President Tebboune said during the ceremony in Bechar, where he welcomed the first passenger train from Tindouf and dispatched the inaugural ore shipment northward.

Experts view the project as critical to Algeria’s efforts to move beyond its hydrocarbon-dependent economy. By integrating the mineral-rich but isolated south, the railway not only promises to bolster heavy industry but also to stimulate regional development and trade connectivity across North Africa.