Algeria to Exploit Iron Reserves

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Researched by Industrial Info Resources (Sugar Land, Texas)--Algeria has more than 30 identified minerals, the best known of which are iron (Fe), salt, zinc, lead, barite and marble. There also have been discoveries of gold and wolfram tin deposits.

According to Algeria's Mining and Energy Ministry, the majority of iron potential is in the southwest part of the country. It has 3.5 million tons of reserves, grading 57% Fe. The deposits are Mecheri Abdelaziz and Gara Djebilet, which are 250 kilometers east of Tindouf. The potential iron resource is set at more than 70 million tons in the northern part of the country; 60 million tons in the Ouenza and Boukhadra areas; and 12 million tons in Djebel Hanini-Setif area, grading 60% Fe.

ArcelorMittal is the sole steel producer in the country. The company owns a steel plant in the Algerian city of Annaba and produces about 750,000 tons of flat- and long-steel products, with most of the output going to the domestic market.

In 2008, Egypt's Ezz Steel received approval from the National Council of Investment in Algeria to begin exploiting Algerian iron reserves by setting up an iron and steel project in Algeria with a capacity of 1.5 million tons per year, with an estimated first stage investment of $750 million. In May 2010, Algeria froze the deal with Ezz Steel and launched talks with other investors to replace the Egyptian firm, according to an Algerian industry and investment ministry statement.

In December 2010, Algeria's biggest private company, Cevital, announced plans to build a steel complex that would turn the country into a steel exporter. "We have a steel project," said Issad Rebrab, the owner and top executive at Cevital. "We plan to produce 7.1 million tons per year." The project has estimated cost of $3.8 billion, and the plant will be in the Bellara industrial zone in Algeria.

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