Algeria’s Minister of State for Energy and Mines, Mohamed Arkab, received a delegation from Chinese steelmaker Baowu Group, one of the world’s largest steel producers, in Algeria on Tuesday. The meeting focused on developing industrial and investment partnerships between companies from the two countries, particularly on projects aimed at developing a low-carbon iron and steel industry.
According to a ministry statement, the talks centered on a strategic industrial project planned in partnership with Algeria’s National Iron and Steel Company (SNS). The project envisages the construction of an integrated facility in Algeria to produce low-carbon direct reduced iron (DRI) and green steel. The facility would combine the country’s natural gas resources with renewable energy and decarbonization technologies, incorporating state-of-the-art industrial solutions.
The meeting was attended by Sonatrach CEO Noureddine Daoudi, as well as senior officials from the Ministry, Sonatrach and SNS. The talks were held as part of the Chinese delegation’s working visit to Algeria. Both sides explored opportunities to establish joint ventures in line with national strategies aimed at strengthening domestic production, adding value to national resources and promoting processing industries.
The discussions also highlighted innovative technological solutions aimed at reducing the carbon footprint of heavy industry. The two sides examined the deployment of modern emissions-reduction and carbon-capture technologies in full alignment with Algeria’s commitments to the energy transition and sustainable development.
Arkab emphasized that the hydrocarbons sector places particular importance on developing high-quality partnerships with major global industrial groups, saying such cooperation would facilitate technology transfer, contribute to the localization of strategic industries and increase domestic value creation. He noted that Algeria’s substantial energy resources, advanced natural gas infrastructure and highly qualified national expertise in processing industries, combined with Sonatrach’s ongoing environmental protection and carbon capture and storage (CCS) programs, provide key foundations for the success of future industrial projects, particularly in the steel sector. The minister also stressed that the process is being built on strong Algerian-Chinese relations.
The statement added that the meeting also provided an opportunity to discuss cooperation between Sonatrach and the Chinese group in supporting the proposed industrial projects. Discussions covered the secure supply of natural gas, petroleum and petrochemical products, as well as raw materials, alongside the implementation of specialized industrial solutions aimed at reducing carbon emissions.
The Chinese delegation, meanwhile, highlighted its extensive experience in producing high-quality and green steel and confirmed its readiness to transfer its know-how and advanced technologies to Algeria. The delegation expressed its full support for the development of a low-carbon iron and steel industry in Algeria, emphasizing that such cooperation would significantly strengthen the competitiveness of Algerian products in global markets.
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