China and Algeria have signed an agreement for the creation of two joint Algerian-Chinese companies to operate the “Jbeilat” iron mine in Tindouf.
A partnership agreement between the National Steel Company FRAAL and the Chinese consortium CMH has just been signed, according to the Algerian Energy Ministry.
The reserves of this huge mine are estimated at 3 billion tons. Algeria counting on the annual production of 40 to 50 tons of iron extracted from “Ghar Jbeilat”, discovered in 1952.
In 1972, Algeria and Rabat signed a partnership agreement and the creation of a joint company between the two countries to operate the mine. But with tensions escalating and relations between them severing, Algeria decided to start exploiting it unilaterally through deals with China. The economic relations between the two countries have an exchange value of about 10 billion dollars recently.
In addition, in November 2022, Algeria announced its signature of the “second five-year plan for comprehensive strategic cooperation” with China, for the years 2022-2026. This coincided with its official application for membership in the “BRICS” group and the remarkable development of Chinese investments in the Maghreb country.
Chinese investments
Thus, the plan signed last year reinforced the comprehensive strategic partnership agreement signed in 2014 between the two countries. This agreement made it possible to complete the housing project “at less than 20 billion dollars”. As well as the east-west highway worth about “11 billion dollars”, the Algiers mosque (about a billion dollars), and other projects.
According to parliamentary sources, the value of the current project, “Jbeilat Gas Mine” is around 6 billion dollars. While Chinese investments in the phosphate sector also amounted to 7 billion dollars, to produce 5.4 million tons of agricultural fertilizers.
For his part, the Deputy Speaker of the Algerian Parliament Moussa Kharfi said that cooperation with Algeria includes the health sector, construction and various other areas according to the “win-win ” principle.
Strategic Repositioning of Algeria
He pointed out that the trade volume between the two countries is about 10 billion dollars. A figure that reflects the volume of relationships that are heading toward major development in the future.
He also pointed out that the development of a partnership with China includes two main areas. Namely, Tindouf and Jbeilat, where iron is found and in the phosphate-rich mines of Tbessa.
In addition, the parliamentarian believes that the development of cooperation in the two regions represents an important leap for the two countries. Particularly in light of China’s desire to strengthen its partnership with Algeria.
According to Mr. Kharfi, “Algeria’s rapprochement with Russia and China worries Europe. Which has worked for decades to deprive Algeria of its resources without benefiting the latter. This prompted Algeria to turn to Turkey, China and Russia, positioning them in line with their interests.
