According to a Bloomberg report cited by Mining.com, Algerian President Abdelmadjid Tebboune inaugurated a jointly constructed railway, which is crucial for this OPEC member's large-scale development of iron ore and represents one of its initiatives to diversify the economy.
The opening of this railway enables the Gara Djebilet iron ore mine, located near the border between Algeria and Morocco, to ship its first cargo, a project that has been in the making for decades. The Algerian National Mining Company (Sonarem) is the main participant in the project.
This new railway line, built by Algerian state-owned enterprises, connects the remote iron ore mine with the cities of Tindouf and Béchar Province. From there, an existing railway line links to the Mediterranean coast and the city of Oran, where Turkish Tosyali Holding operates a steel plant.
Algeria is an important natural gas supplier to Europe, with oil and gas accounting for three-quarters of its export value and half of its fiscal revenue, but it is highly susceptible to energy price fluctuations. Therefore, the country is seeking other sources of income and is currently attempting to vigorously develop the mining industry.
