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Algeria is building a mine-to-port iron ore lane. This week, Algeria inaugurated the Western Mining Railway, a 950 km rail link connecting iron ore-rich southwestern Algeria to industrial hubs and ports in the north of the country. The project, built in cooperation with China Railway Construction, will serve iron ore movements from the China-backed Gara Djebilet mine to the steel production hub owned by Turkey’s steel producer Tosyali.
What we know: Gara Djebilet’s first processing unit is on track to launch by the end of April 2026, targeting a yearly output of 4 mn tons, and the rail link is slated to run 10 trains a day once fully operational. The Algerian government is also working towards establishing new iron processing plants in Tindouf, Béchar, and Naama, along the new rail link.
Why it matters? It could hit other global players. Australia and Brazil together dominate global iron ore exports –– each around one-third. Algeria won’t break the duopoly on volume tomorrow, but it can change the margin game for the EU-MENA basin by adding a Mediterranean option that shortens the logistics chain and tightens delivery windows.
But why the EU market in particular? The rail integration means less carbon footprint for Algeria’s inland iron ore logistics. Coupled with Algeria’s proximity to European markets and Tosyali’s green steel production in northern Algeria, the country’s iron and steel production might develop a competitive edge in light of the EU’s Carbon Border Adjustment Mechanism.
Background: The rail project is part of Algeria’s push to diversify its economy and localize the processing of natural resources into higher-value finished products rather than exporting them in raw form. The country is working on the Eastern Mining Railway — another 422 km rail link connecting its phosphate-rich areas in the east, such as the Blad El Hadba phosphate mine in Tebessa, to Annaba Port. The project follows the same playbook as its western counterpart, integrating mine-industrial-port infrastructure to streamline the logistics of phosphate fertilizer production for export purposes and domestic use.
