Sonaram, ONEX, and Teramine Ink Explosives Deal to Accelerate Wadi Amizour Project
Image: Rass El Mal
Takeaway
The strategic agreement between Sonaram, ONEX, and Teramine to secure explosives for the Wadi Amizour project signals a commitment to the project's timely execution. Investors should monitor the project's progress, as successful completion could significantly impact Algeria's position in the global non-ferrous metals market and reduce reliance on imports. The project's long-term operational horizon and potential for export revenue make it a key development for Algeria's economic diversification efforts.
Sonaram's Director General, Reda Belhadj, reached an agreement with a delegation from ONEX and Teramine to establish a precise timeline for supplying explosives and detonation accessories to the Wadi Amizour zinc and lead project. The agreement aims to ensure operations commence on schedule. The meeting, which included officials from ENOF and Sonaram executives, focused on determining the required quantities of explosives and establishing a dedicated storage facility at the project site.
The Wadi Amizour project, located in Bejaia province, represents a key component of Algeria's strategy to diversify its economy away from hydrocarbons. Prime Minister Sifi Ghrieb officially launched the project, which is being developed by Bejaia Zinc and Lead (BZL), an Algerian-Australian joint venture formerly known as Western Mediterranean Zinc. The project faced earlier delays related to land acquisition and compensation for affected residents, but President Abdelmadjid Tebboune designated it as a project of 'public utility' in May 2023, accelerating expropriation procedures.
The Oued Amizour site holds estimated reserves of around 34 million tons of ore, ranking it 12th among known zinc and lead deposits of its type globally. The project is designed to process 2 million tonnes of raw ore annually, yielding approximately 170,000 tons of zinc and 30,000 tons of lead. The raw ore contains modest concentrations of approximately 4% zinc and 1.5% lead, which will be transformed into a high-value concentrate reaching around 60% purity through industrial processing. The underhand drift and fill mining method is being proposed, and ore will be processed in a conventional differential flotation concentrator to produce separate zinc and lead concentrate.
By producing zinc and lead locally, Algeria aims to reduce its import bill and strengthen national industrial autonomy. Surplus production will be exported to international markets, where demand for zinc and lead remains strong, particularly in sectors such as construction, renewable energy infrastructure, and battery manufacturing. Terramin, an Australian-listed company, holds a 49% shareholding in BZL, while Algerian state companies ENOF (48.5%) and ORGM (2.5%) own the remaining 51%. In November 2024, BZL awarded a $336 million Engineering, Procurement, and Construction (EPC) contract to China's Sinosteel Equipment & Engineering Co. for the construction of a 2 million tonnes per annum process plant, an underground mine, and associated infrastructure.
With construction underway since November 2024, the Wadi Amizour project is expected to have a 20-year operating period. A major Algerian bank approved 'in-principle' a loan of 32.2 billion Algerian dinars (~$243.6 million) with a 15-year term, including a 5-year grace period, covering 75 percent of Tala Hamza's upfront capital expenditure. Once the processing chain reaches full capacity, the Oued Amizour zinc project is expected to produce about 170,000 tons of zinc annually, alongside roughly 30,000 tons of lead. The project is expected to create 780 direct jobs and more than 4,000 indirect jobs.