ArcelorMittal’s union former leader: Algeria will use preemption right to get back El Hadjar complex

The Algerian government is ready to use right of pre-emption to take back iron complex in El Hadjar in the province of Annaba (east of Algeria) in accordance with the Law No 76 of the Complementary Finance Law 2009, ArcelorMittal’s union former Secretary General in El Hadjar Smail Kouadria told Echorouk.

The industry ministry has recently received an expertise report about the complex situation. “ArcelorMittal has destroyed El Hadjar complex for the last ten years. It did not respect any clause stipulated by the partnership contract with SIDER group.”

Kouadria said the complex produces about 600,000 tons per year while it is supposed to produce 1 million and 500,000 tons in the tenth year of partnership.

The investment program was applied neither on El Hadjar complex nor on mines which are drained without any protection. “The industry ministry prepared a developed investment program to modernize the iron complex to raise production capacity.”

According to ArcelorMittal’s union former Secretary General, Algeria plans to reach 10 million tons of iron and steel production within 10 years between El Hadjar complex and Bellara complex in the province of Jijel (east of Algeria). This is due to be concretized through a Qatari partnership.

He added that iron import invoice is estimated at $10 billion per year. “That’s a huge number compared to a country rich of iron mines and a large production complex.