Algiers, Algeria

China is working on a 575km rail line, which aims to connect one of the world's largest iron ore mines to the national rail network in Algeria. The Gara Djebilet project aims at constructing 6,000km of rail tracks across the North African country. 

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China Railway Construction Corporation (CRCC) is working with Travaux Publics, which is a state-owned civil engineer, for this project. 

The route will connect the Gara Djebilet iron ore mine in Algeria's southwest province of Tindouf with the Dumiat Industrial Zone in the Bechar region, which is close to the Moroccan border. 

The route will have 40 stations, hence besides connectivity, it will also provide key transport links to isolated regions of the province and will enhance standards of living and create economic opportunities for individuals. Notably, Algeria also needed an easy way to transport the iron ore. 

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Last year, Algerian president Abdelmadjid Tebboune said that Algeria's partnership with China will boost economic development across the country, from housing to other key infrastructural projects such as highways and dams. 

Ever since gaining independence from France in 1962, the African nation has taken a series of decisions for economic development. It majorly remains reliant on its oil and gas production capacity but is now trying to attract foreign investment in a bid to diversify its economy. 

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To steer the economy, Algeria has been strengthening its ties with China, as well as Russia, which has been the main arms supplier for Algeria. 

The emerging ties come at a time when the European Union and the United States have been hesitant to engage with Beijing and Moscow. 

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What's in it for China? 

On one hand, Algeria is witnessing the development of the infrastructure, on the other hand, the project could help China de-risk its iron ore supply. 

The Algerian government has revealed that Gara Djebilet is one of the largest iron ore mines in the world, with reserves of 3.5 billion tonnes, which has emerged as an opportunity for Beijing which imports almost all its ore from only two countries - Australia (79 per cent) and Brazil (19 per cent) at present. 

Total world crude steel production was nearly 1.9 billion tonnes in 2022, with the biggest steel-producing country, currently China, accounting for 54 per cent of world steel production in 2022. 

Hence, Algeria turned out to be China's easy option to source iron ore amid strained economic and diplomatic ties with Australia.