Algeria Recovers Hadjar Compound Of Iron and Steal

Algeria recovered, on Sunday, all the assets and shares of Hadjar compound of iron and steel and its branches (Eastern Algeria), after fifteen years of the partnership that begun in 2001 between the Indian “Arcelor Mittal” company, and “Cedar” for conducting Hadjar company.

Under the agreement between the state company Imetal and ArcelorMittal Algeria at the headquarters of the Industry Ministry, when the last phase in the application of the initial agreement that was signed in October,7, 2015, which provided for the transfer of the Indian partner of the majority of shares for the Algerian side, in pursuance of the State Contributions’ Council approval in October 2014, on all the obligations that are related to the reviving and resuscitation of Hadjar company.

According to the agreement between Imetal and ArcelorMittal, the “Eco Algeria” website stated that all the social quota of the branches of “ArcelorMittal Algeria” and “Arcelor Mittal’s Pipes” and “ArcelorMittal Tebessa” will be transferred, and the exploitation of the iron mine in Tebessa, and the development of “ArcelorMittal” companies as well.

Imetal company will conduct three companies, which include the iron and steel company Hadjar, while “Ramchkho Thari” an official in “ArcelorMittal” praised the agreement, and said that the agreement is useful for the three industrial flooring, and opens horizons in the development of the iron and steel industry activities in Algeria.

 A Billion Dollars For A Comprehensive Modernisation

Minister of Industry and Mines, Abdessalam Bouchouareb, asserted the “positive spirit that prevailed between the two partners since the announcement of the agreement”, adding that the three recovered industrial flooring are important and will play an active role in the future of the iron and steel industry, to achieve Algeria’s industrial ambition to Algeria.

“The agreement aims to achieve self-sufficiency in iron and steel, and supports several industrial sectors. We will open a new era for Hadjar company. Re-activation of iron and steel branch constitutes a priority for the government, which it considers a strategic industry.”

In return for its pledge to secure the current work positions, and allocating a billion dollars for a comprehensive modernisation plan, as the Prime Minister, Abdelmalek Sellal, is betting on raising Hadjar compound’s production from 1 to 2.2 million tons within 2017, in conjunction with the movement for the replacement of the first furnace which stopped activity with another modern electric, with the valuation of “Boukhadra” and “Ouenza” mines.

Government references mentioned the background of the restoration of Algeria to the reins of Hadjar, due to the obligations of the Indian partner in implementing the terms of the first agreement that is signed in 2001, and the failure to implement a plan for the development in $ 700 million, to raise the company’s productivity and ensure qualification through training and upgrading the tools of production.

Indian trader asked for extending the contract for additional ten years and take advantage of the benefits of the National Agency for the development of investment, but the government refused after standing on wasting the results that it achieved, which fastened the renegotiation according to the new rules.

Production of 13 million tonnes in the Prospects of 2020

Bouchouareb announced that Algeria imports 6 to 7 million tonnes per year of iron worth seven billion dollars, and announced on a movement to produce between 12 and 13 million tonnes between 2019 and 2020.

He insisted on the necessity of recruiting public and private sectors, in addition to the foreign dealers, as he predicted that the demand in the national market will double in 2025.

“We have an actual and real project for Hadjar company, and the restructuring process will support the iron and steel development plans in Annaba (Eastern Algeria), and exploiting the mines in Tebessa, not to mention ensuring the sustainability of activity over the long term”.