El Hadjar, which is the most troubled steel producing asset in Algeria, is to receive assistance from the local government in terms of sourcing raw material. This has been recently announced by Algeria’s Ministry of Industry. The asset has been suffering, among other issues, from disruptions in iron ore supply from local mines. “We have decided to supply the steel complex of El-Hadjar with raw steel and to import it, if necessary, until the mines of Ouenza and Boukhadra are able to provide it with 3 million tons, " the industry minister said. The company is reported to require around 4 million mt of iron ore per year.
The company has been undergoing a government-backed renovation program for many years now. According to the ministry, the complex should have been allowed to import the raw material from the beginning and, in that case, there might have been a chance to have a local supplier of semis, instead of semis imports which have increased over past years, SteelOrbis understands.
