Algeria is planning to pump $7-10 billion into a project to develop a giant mine with a targeted production of 40 million tonnes of iron, a newspaper reported on Monday.
Gâra Djebilet mine in the western Tindouf province was commissioned in mid-2022 with planned initial production of between two to three million tonnes per year.
The mine straddles over an area of more than 125 million square metres and is rated as one of the world’s largest iron mines.
“There are plans by the government to invest between $7 billion and $10 billion in this project to achieve the production target,” the Algerian Arabic language daily Elkhabar said, quoting sources at the Energy and Mines Ministry.
It said the Ministry has set a target to produce 12 million tonnes of iron per year from the mine in 2025 and over 40 million tonnes per year in 2040.
Algerian officials in April revealed plans to build a 1,000-km rail line to link the mine with Bechar province in Northwest Algeria in order to achieve the targeted output.
Gâra Djebilet contains an estimated 3.5 billion tonnes of iron ore, of which around 1.7 billion tonnes are exploitable.