China Expands Iron Ore Supply Chain with New Railway Links in Africa

China will receive iron ore shipments from Guinea and Algeria this year as new rail and port projects remove critical bottlenecks and open vast mineral reserves for global trade. This is reported by the railway transport news portal Railway Supply.

These projects target a strategic goal because China wants to reduce dependence on Australia and Brazil, which currently supply about 80 percent of global seaborne iron ore.

Guinea’s Simandou mine illustrates this effort. It contains the world’s largest untapped iron ore reserve. Developers built a 650-kilometer railway linking the site to the Atlantic coast to enable exports starting in November.

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Algeria follows a similar path. The Gara Djebilet deposit sits deep in the Sahara Desert, nearly 1,650 kilometers from Mediterranean ports. A combination of new and upgraded rail lines will bridge this distance and unlock access to global markets.

China Secures Supply Through African Partnerships

By investing heavily in infrastructure, China ensures steady raw material for its steel sector, which fuels urban growth and industrial demand. These partnerships also offer African nations opportunities for economic advancement and trade integration.

Industry analysts expect these developments to reshape the iron ore market. More African supply will boost China’s negotiating power and help stabilize prices, reducing volatility caused by reliance on limited sources.

China and Africa Enter a New Phase of Trade

As the first Simandou shipments approach, the market anticipates a shift toward diversified sourcing. This milestone could inspire similar ventures in resource-rich regions, further expanding China’s global reach in commodity trade.

These rail and port networks not only solve long-standing logistical challenges but also redefine trade routes. With operations beginning soon, China and its African partners are setting the stage for lasting changes in global resource flows.

Source: www.scmp.com

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