Algeria’s Mining & Steel Expansion: Industrial Acceleration and Strategic Positioning in North Africa

Executive Summary

Algeria is entering a decisive phase in its industrial transformation, leveraging large-scale mining projects and steel production expansion to reduce hydrocarbon dependency and position itself as a regional industrial hub.

The 4th edition of the Metal Steel & Mining Algeria Expo (30 March – 1 April 2026), gathering 250 exhibitors (60% international) and approximately 5,000 industry professionals, reflects a rapid scaling of investor interest and industrial coordination.

This momentum is underpinned by three structural drivers:

• The Gara Djebilet iron megaproject, among the largest globally
• Expansion of national steel champions (Tosyali, AQS)
• Emerging ambitions in green steel and critical minerals (phosphates, zinc, lithium)

Industrial Platform Consolidation: Expo as Strategic Interface

The Metal Steel & Mining Algeria Expo has evolved into a regional industrial coordination platform, connecting:

• State actors (Sonarem, ministries)
• Foreign industrial partners (China, Turkey, Italy, India)
• Multilateral industry bodies (World Steel Association)

Growth trajectory:

• 2023: ~100 exhibitors
• 2024: ~190 exhibitors (China as guest of honor)
• 2026: 250 exhibitors from ~15 countries

ASA Insight:

The event is transitioning from a commercial exhibition into a policy-aligned industrial ecosystem hub, supporting Algeria’s import substitution and export-oriented strategy.

Gara Djebilet: Strategic Anchor of Algeria’s Mining Doctrine

The Gara Djebilet iron ore deposit (Tindouf)—estimated at 3.5 billion tonnes—constitutes the backbone of Algeria’s industrial repositioning.

Key Developments:

• 950 km railway (Gara Djebilet → Béchar) operational (Feb 2026)
• Built in 20 months via Sino-Algerian partnership (CRCC + local firms)
• Capacity: 24 daily mining convoys
• Initial processing plant: 4 Mt/year (April 2026)
• Targets:

– 12 Mt/year by 2030

– 50 Mt/year long-term

Strategic Impact:

• Potential $2B annual import substitution (iron)
• Enables vertical integration: extraction → processing → steel production

ASA Assessment:

Gara Djebilet represents a state-led resource industrialization model, comparable to historical mining-industrial corridors (Australia, Brazil), but remains constrained by high phosphorus content (0.8%), requiring advanced processing solutions.

Steel Capacity Expansion: National Champions Scaling

Tosyali Algeria (Oran)

• Current capacity: ~6 Mt/year → target 8 Mt/year (2026)
• Record: 2.43 Mt DRI (single module, 2025)
• Export footprint: 50+ countries
• New cold rolling unit targeting automotive & appliances sectors

Algerian Qatari Steel (AQS – Bellara)

• Capacity: 2 Mt/year
• Exports: > $300M (2023)
• Ongoing expansion & product diversification

National Steel Capacity Distribution:

• Tosyali: 57%
• AQS: 29%
• Sider El-Hadjar: 14%
• Total: ~7 Mt/year

ASA Insight:
Algeria is transitioning from a net importer to a competitive exporter of semi-finished and finished steel, with increasing integration into global supply chains.

Green Steel Ambition: Early Positioning in Energy Transition

A strategic MoU (June 2025) between:

• Sonatrach
• Hecate Energy (US)
• Tosyali Algeria

Targets development of hydrogen-based “green steel” production.

Key Elements:

• DRI units designed for 100% hydrogen conversion
• Integration with renewable energy infrastructure
• Potential first industrial-scale green steel production in North Africa

ASA Assessment:
If executed, this initiative could position Algeria as a first-mover in decarbonized steel in Africa, enhancing access to EU green markets and carbon-regulated trade zones.

Multi-Mineral Expansion: Diversification Beyond Iron

Phosphate (Tébessa)

• Target: >4 Mt/year fertilizer production
• Construction phase expected post-2026 studies

Zinc/Lead (Oued Amizour – Béjaïa)

• Reserves: 34 Mt
• Output:

– 170,000 t/year zinc

– 30,000 t/year lead

Lithium Exploration

• Regions: Hoggar, In Guezzam
• Strategic objective: entry into battery supply chains

ASA Insight:
Algeria is aligning with global demand shifts toward critical minerals, signalling long-term positioning within energy transition value chains.

Strategic Positioning: Toward a Mediterranean-Africa Industrial Hub

Competitive Advantages:

• Geographic proximity to Europe & African markets
• Expanding export capacity (Tosyali target: $2.2B in 2026)
• Integration of mining + steel + logistics

Constraints:

• Technical challenge: high-phosphorus iron ore processing
• Need for tariff protection (flat steel)
• Limited African participation in industrial ecosystem

African Security Analysis (ASA) Final Assessment

Algeria’s mining and steel strategy reflects a coherent state-driven industrial doctrine, combining:

• Infrastructure deployment
• Foreign industrial partnerships
• Resource valorisation
• Export-oriented production

The Metal Steel & Mining Algeria Expo 2026 serves as a visible indicator of this structural shift, positioning Algeria as a potential mid-term industrial power in North Africa and the Mediterranean.

However, execution risks remain tied to:

• Technological constraints (ore processing)
• Capital intensity of downstream integration
• Ability to sustain foreign investment inflows