Terramin Signs Major EPC Contract with Sinosteel for Tala Hamza Zinc Project

Terramin Australia

Terramin Australia, a South Australia-based mining group, has signed a significant engineering, procurement, and construction (EPC) contract with Sinosteel, a Chinese state-owned mineral and metallurgical firm. This agreement is for the construction of the Tala Hamza zinc project, located in Algeria, marking a major step toward the development of one of the country’s most promising mining ventures.

Key Details of the Tala Hamza Zinc Project

The £336 million EPC contract includes the construction of a 2 million tonnes per year (2mn t/yr) processing plant and an underground mine. Terramin's executive chair, Bruce Sheng, emphasized that the project would play a pivotal role in boosting the Algerian economy as it progresses. Construction is set to begin in the coming weeks, signaling the start of an ambitious project that could significantly impact the regional mining industry.

The Tala Hamza zinc project is being developed by Western Mediterranean Zinc, a joint venture in which Terramin holds a 49% stake, while the remaining 51% is owned by two state-run Algerian entities, Enof and ORGM.

The Zinc and Lead Resources of Tala Hamza

The Tala Hamza deposit is considered rich in both zinc and lead. According to Terramin, the deposit contains a resource of 53 million tonnes at 5.3% zinc and 1.3% lead, with a cut-off grade of 2.5% zinc-equivalent. A definitive feasibility study completed in 2018 estimated that the mine could produce an average of 129,300 tonnes per year of zinc concentrate and 26,000 tonnes per year of lead concentrate over a 21-year mine life.

As part of the project, the construction of the processing plant and mine infrastructure is expected to create numerous job opportunities in Algeria, further enhancing the project's economic importance.

Implications for the Algerian Mining Sector

The Tala Hamza zinc project has the potential to become one of Algeria's flagship mining projects. Not only will it contribute to the country's zinc production capacity, but it will also bolster Algeria's mining sector, attract foreign investment, and provide long-term economic benefits. With the involvement of Sinosteel, a major player in global metallurgy, the project also signals strong international confidence in Algeria’s mining prospects.

Conclusion

The signing of the EPC contract for the Tala Hamza zinc project represents a significant milestone for Terramin Australia and its partners. The project is expected to help meet the growing global demand for zinc and lead while supporting Algeria's economic growth. As construction begins, the focus will now shift to timely execution and the successful development of a high-quality mining operation in the region.