Terramin Australia Limited says Western Mediterranean Zinc Spa (WMZ), the operator of Tala Hamza zinc project, in Algeria, has signed an engineering, procurement and construction contract with Sinosteel Equipment & Engineering Co. Ltd for the construction of the project.

The scope of the EPC Contract covers the construction of the following:

• 2 Mt/y process plant;
• 2 Mt/y underground mine;
• Backfill plant;
• General civil works;
• Dry stack tailing storage facility;
• Water ponds and wastewater treatment plant;
• Road works (including access road) within the mining permit;
• Electrical supply infrastructure within mining permit;
• Various workshops, offices and laboratory; and
• Security fencing

The EPC contract has been signed off at a value of $336 million and the funding arrangements for the contract have also been agreed and formalised for the next 18 months. It is anticipated that construction will commence in the coming weeks.

Sinosteel MECC is an internationally renowned engineering technology and service company with technological innovation as the guide, with engineering general contracting and professional services as its main business. Its business integrates domestic and overseas EPC projects, including mining, metallurgy, power energy and mineral processing.

Sinosteel MECC has executed overseas projects of more than $17.02 billion since 1999, covering 50-plus countries and regions. The total contract value performed in Algeria has been over $4 billion since 2015, including mining and beneficiation projects and green raw materials projects.

Terramin’s Executive Chair, Bruce Sheng, said: “The signing of this EPC contract is an enormous achievement, the culmination of many years of hard work for not only Terramin but also for our Algerian partners. For the nation of Algeria, this will become an historical event by positioning themselves with a world class mining project, which will boost their economy and showcase the use of high global mining standards for this long-term mining operation. It is with great anticipation that everyone involved is about to see the construction of this special project begin.”

Tala Hamza is owned by WMZ, a joint venture vehicle in which Terramin holds a 49% shareholding with the remaining 51% held by two Algerian government-owned companies: Enterprise Nationale des Produits Miniers Non-Ferreux et des Substances Utiles Spa (48.5%) and Office National de Recherche Géologique et Minière (2.5%).

The Tala Hamza deposit holds a resource of 53 Mt at 5.3% Zn and 1.3% Pb at a cutoff grade of 2.5% zinc-equivalent. The deposit is situated within the Oued Amizour permit area that covers 125 sq.km and includes a number of potential additional prospects for lead-zinc and copper. A definitive feasibility study was completed in mid-2018, which indicated the mine could produce an average of 129,300 t/y of zinc concentrate and 26,000 t/y of lead concentrate over a 21-year mine life, peaking at 153,000 t/y zinc and 36,000 t/y lead concentrate from the mining and processing of an average of 1.32 Mt/y of ore.