Bejaia Zinc and Lead Mine Access Construction Begins, Boosting Algerian Mining Sector
Image: Algerie Eco
Takeaway
The commencement of the Tala Hamza mine development signals a strategic shift in Algeria's economic policy, attracting foreign investment and diversifying beyond hydrocarbons. Investors should monitor Western Mediterranean Zinc (WMZ) and Sinosteel's progress, as successful execution could catalyze further mining projects in Algeria. The mine's output of 170,000 tonnes of zinc and 30,000 tonnes of lead annually will impact global supply chains and pricing.
Preparatory work has commenced on access road construction for the zinc and lead mine in Amizour and Tala Hamza, located in the Bejaia province. The project, situated in the municipalities of Amizour and Tala Hamza, marks a significant step towards the operational launch of one of Algeria's largest mining endeavors. Wali Kamel Eddine Kerbouche officially launched the works, with officials from Sonarem and ENOF in attendance.
The Tala Hamza–Amizour mine is a strategic project for Algeria, aimed at enhancing the country's mining sector and diversifying its economy beyond hydrocarbons. The project follows the completion of administrative procedures and the resolution of obstacles that had previously hindered its progress. The mine is expected to produce approximately 170,000 tonnes of zinc concentrate and 30,000 tonnes of lead annually. The mine's deposit is ranked 12th globally in estimated size.
The mine is operated by Western Mediterranean Zinc (WMZ), an Algerian-Australian joint venture. Originally, Terramin, an Australian company, held a 65% stake, while Algeria's National Company for Non-Ferrous Mining Products (ENOF) and Office National de Recherche Géologique et Minière (ORGM) held 32.5% and 2.5% respectively. However, in 2022, the Algerian side gained a majority stake of 51%. The project has an estimated value of $471 million. In November 2024, Sinosteel Equipment & Engineering Co. Ltd, a Chinese state-owned company, signed a $336 million EPC contract to build the mine and processing plant.
The project is expected to boost the local economy and create jobs for young people in the region. Reda Belhadj, CEO of Sonarem, emphasized the project's strategic significance and its role in regional development. The initiative will enhance the valorization of Algeria's mineral resources and strengthen economic sovereignty. The current phase of the project focuses on compensating local landowners.
With construction underway, production is projected to begin in July 2026, with an expected output of 170,000 tons of zinc concentrate and 30,000 tons of lead annually over 19 years. Sonarem will ensure continuous oversight of all project phases, guaranteeing adherence to schedule and technical standards. The authorities have highlighted the project's role in promoting Algerian mineral resources and strengthening economic sovereignty.