China Baowu Steel Group and Algeria's state-owned National Iron and Steel Company (SNS) have discussed cooperation on the development of an integrated low-carbon iron and steel complex in Algeria, according to a statement released by the Algerian Ministry of Hydrocarbons.
Project to cover entire steel value chain
The proposed project would cover the entire value chain, from the development and processing of Algeria's iron ore resources to the production of direct reduced iron, hot briquetted iron and value-added green steel.
Baowu presented its direct reduction, industrial digitalization and emissions-reduction technologies during the discussions, which were also attended by representatives of Baowu Resources, Baowu Energy and China Road and Bridge Corporation. Algeria's natural gas reserves, renewable energy potential and strategic access to regional and international markets were highlighted as key advantages for the project.
Sonatrach may support energy and raw material supplies
Algerian energy producer Sonatrach may support the proposed complex by securing its requirements for natural gas, petroleum and petrochemical products and other raw materials. The project could also benefit from Sonatrach's carbon capture and storage programs.
Meanwhile, a Baowu technical team reportedly inspected steelmaking facilities and port infrastructure in Annaba to evaluate the region's existing industrial and logistics capabilities. However, the project's final location, production capacity and investment value have not yet been disclosed.
Technical studies and joint roadmap planned
The parties also discussed technology transfer, workforce training and the involvement of Algerian companies in the project. Baowu and SNS agreed to continue technical and economic studies and prepare a joint roadmap identifying priority areas for possible industrial cooperation. No binding agreement or final investment decision has been announced.
