Oued Amizour Zinc Mine: A Game-Changer for Algerian Mining Sector Set to Start Operations in November
BY: Hana Saada
Oued Amizour, Algeria, October 12, 2023– After 34 years since the discovery of a substantial zinc reserve in Oued Amizour, in the wilaya of Béjaïa, Algerian authorities have taken a momentous step forward by announcing the commencement of the first phase of the project on November 1 of this year. The Oued Amizour zinc mine, an astonishing discovery in 1989, is poised to become one of the largest mines globally and a vital contributor to Algeria’s economy.
With an impressive total investment of $471 million, the mining operation, facilitated by the mixed Algerian-Australian company Western Mediterranean Zinc (WMZ), will be shared with 51% owned by the public group Sonarem and its subsidiaries and 49% held by the Australian company Terramin. The deposit boasts a remarkable lifespan of 19 years, with the initial three years devoted to infrastructure setup and ore processing unit installation, resulting in a concentrate fit for both the national market and international export.
Upon entering the exploitation and production phase over the subsequent 17 years, this mine is expected to significantly impact the economic development of Algeria. This is due to the worldwide shortage of zinc, which is a critical component in the energy transition and digital industries. Current global zinc reserves amount to approximately 285 million tonnes, with an annual extraction of 13 million tonnes. As a result, the international market has seen the price of zinc consistently rise, with each tonne exceeding the $2,500 mark, and lead following at around $2,000 per ton.
The Oued Amizour zinc mine’s operation promises to make a substantial contribution to the national economy. It not only adds significant value but also replenishes state coffers, marking a pivotal moment for Algeria as it diversifies its sources of foreign currency and seeks to reduce its reliance on oil revenue for development purposes.
The Minister of Energy and Mines acknowledges the pivotal role of this project on the government’s priority list, alongside the Gara Djebilet iron mine and integrated phosphate exploitation. The Minister believes that the mine’s operation will not only bolster economic activity in the region but will also invigorate the processing industry.
Speaking to the broader impact of mining projects on local and national development, Professor Aïssa Mouhoubi of the University of Béjaïa emphasizes the potential for mining to stimulate both the national economy and local development. Professor Mouhoubi draws attention to well-established cities worldwide that have evolved around mining activities. “Many large cities in the world were built around mines,” he says, highlighting examples such as Røros in Norway, built around copper mines, Kiruna in Sweden, developed around iron mines, and Sudbury in Canada, flourishing around copper and nickel mines. This underscores how the mining sector can enhance economic development and improve citizens’ standard of living.
For the company responsible for operating the Oued Amizour zinc mine, the project’s future is bright. It is estimated that 720 direct employment positions and 4,000 indirect employment positions will be created, paving the way for a prosperous and thriving future for Algeria’s mining sector. The Oued Amizour zinc mine’s commencement this November promises to be a turning point, contributing to Algeria’s economic growth and enhancing its position on the global stage.
