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Algeria has commenced site preparation and construction works at the 234-acre Oued Amizour zinc and lead mining project in Béjaïa province, marking a key milestone in the country’s push to expand its mining sector and diversify away from hydrocarbons.
The project was officially launched on Tuesday by Prime Minister Sifi Ghrieb and is being developed by Bejaia Zinc and Lead (BZL), an Algerian-Australian joint venture (JV) formerly known as Western Mediterranean Zinc.
A report by local news website Dzair Tube said the total investment required for the project, also referred to as Tala Hamza Zinc Project, amounts to $471 million. It is expected to process 2 million tonnes of raw ore annually to produce approximately 170,000 tonnes of zinc and 30,000 tonnes of lead. The project is also expected to create 780 direct jobs and more than 4,000 indirect jobs
Australia-listed Terramin has a 49 percent shareholding in BZL while the remaining 51 percent is owned Algerian state companies Enterprise National des Produits Miniers Non-Ferreux et des Substances Utiles (ENOF) at 48.5 percent and Office National de Recherché Géologique et Minière (ORGM) at 2.5 percent.
According to Terramin’s 2025 annual report, the project contains about 53 million tonnes of mineral resources, grading around 5.3 percent zinc and 1.3 percent lead, supporting a 20-year operating period and positioning it among potentially the world’s largest zinc projects.
In November 2024, the JV awarded a $336 million Engineering, Procurement, and Construction (EPC) contract to China’s Sinosteel Equipment & Engineering Co. for the project. The contract covers the construction of a 2 million tonnes per annum, (mtpa) process plant, an underground mine, backfill plant, dry stack tailings storage facility, and associated infrastructure.
The annual report mentioned that a major Algerian bank approved ‘in-principle’ a loan of 32.2 billion Algerian dinars ($243.6 million) with a term of 15 years, including a 5-year grace period, covering 75 percent of Tala Hamza’s upfront capital expenditure.
The project had faced delays due to land acquisition issues and compensation for affected residents. In May 2023, President Abdelmadjid Tebboune designated the project as one of 'public utility,' enabling reclassification of agricultural land and accelerating expropriation procedures. Subsequently in January 2026, he set a deadline of March 2026 for the project launch.
Last year, Algeria reformed its mining laws through Law No. 25-12 that allows foreign ownership of up to 80 percent of mining projects (up from 49 percent), streamlined the permitting process enabling a single mining permit up to 30 years covering both exploration and extraction phases and mandated a 20 percent stake in projects through state company Sonarem or its subsidiaries.
In February 2026, Algeria had announced the start of production at its giant Gâra Djebilet iron ore mine located in the western Tindouf province.
(Writing by Majda Muhsen; Editing by Anoop Menon)
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