On March 30, a consortium of three Chinese companies signed a memorandum of understanding on iron ore project cooperation with Algeria's National Iron and Steel Mining Company (FERAAL), which will conduct a feasibility study on the development of Gara Djebilet iron ore deposit and determine a joint development plan based on the conclusions of the study.
The consortium consists of three companies, MCC International Engineering Group (MCC), China Water and Power International Corporation (CWE) and Hunan Heyday Solar.
The signing ceremony was held at the headquarters of the Algerian Ministry of Energy and Mines, attended by Minister Mohamed Arkab, Counsellor Zhao Dongliang of the Commercial Affairs Section of the Chinese Embassy in Algeria and Harami Mohamed Sakhr, Chairman of the Algerian National Industrial and Mining Corporation (MANAL).
Alkab welcomed the cooperation between Algerian-Chinese companies, and acknowledged the comprehensive solution proposed by the Chinese consortium, hoping that the two sides could actively push forward the project. "According to the preliminary estimate, the cost of the project may exceed $2 billion (13.1 billion yuan), but of course this is only a rough figure," he said.
The Gala Jiblete iron ore deposit, 160 km southeast of Tindouf province, has huge reserves of about 3.5 billion tonnes with a 57 per cent iron grade and consists of three blocks covering a total area of 400 square kilometres, which are open pit mines that are easy to exploit, according to MCC.
According to the Ministry of Mineral Resources, the iron ore has been discovered and studied for more than 50 years. The ore structure is complex and has a high phosphorus content, which needs to be treated by appropriate methods to reduce the phosphorus content from 0.8% to 0.3%.
Feraal, which was set up in 2014 to develop the mine, was expected to produce 10-12 million tons by 2025.
Back in 2016, Feraal started talks with Chinese companies, including China Civil Engineering Corporation (CCECC), on a joint venture to develop the mine and build a 950-kilometer-long railway link to Bechar province to transport the ore to port.
In 2017, Feraal signed a memorandum of understanding with Sinosteel Engineering & Technology Co., Ltd., regarding the mine.
Late last year, Feraal launched a public call for partners for the project.
At a ministerial meeting on January 3, President Abdul Majid Teben expressed the need for continued efforts to develop the country's mineral resources and stressed the importance of starting production at the mine as soon as possible.
