Terramin Australia Advances Tala Hamza Zinc Project with EPC Contract Signing
TZN (TZN) Share Update November 2024 Sunday 3rd
Terramin Australia Signs EPC Contract for Tala Hamza Zinc Project
Terramin Australia Limited (ASX: TZN) has taken a significant step forward in the development of the Tala Hamza Zinc Project by signing an Engineering, Procurement, and Construction (EPC) contract with Sinosteel Equipment & Engineering Co. Ltd.
Instant Summary:
- EPC contract valued at US$336 million.
- Construction to begin in the coming weeks.
- Sinosteel MECC to manage construction of a 2.0mtpa process plant and underground mine.
- Project includes infrastructure like water treatment and electrical supply.
- Sinosteel MECC has extensive international experience in EPC projects.
Project Overview
Terramin Australia Limited, a prominent player in the mining sector, has announced the signing of an Engineering, Procurement, and Construction (EPC) contract for the Tala Hamza Zinc Project. The contract, valued at US$336 million, has been awarded to Sinosteel Equipment & Engineering Co. Ltd. (Sinosteel MECC), an internationally recognized firm known for its expertise in engineering and construction.
The Tala Hamza Zinc Project is set to include the construction of a 2.0 million tonnes per annum (mtpa) process plant and an underground mine of the same capacity. Additional infrastructure will encompass a backfill plant, dry stack tailing storage facility, water ponds, and wastewater treatment plant. The project will also see the development of road works, electrical supply infrastructure, and various support facilities such as workshops and offices.
Sinosteel MECC's Role
Sinosteel MECC brings a wealth of experience to the project, having executed overseas projects worth over US$17.02 billion since 1999. The company has a strong presence in Algeria, with a total contract value exceeding US$4 billion since 2015. Their involvement in the Tala Hamza project is expected to leverage their extensive expertise in mining, metallurgy, and infrastructure development.
Terramin's Executive Chair, Mr. Bruce Sheng, expressed his enthusiasm about the partnership, highlighting the collaborative efforts between Terramin, Sinosteel MECC, and their Algerian partners. He emphasized the project's significance for Algeria, noting its potential to boost the local economy and set new standards in mining operations.
The signing of the EPC contract is a positive development for Terramin Australia, marking a major milestone in the advancement of the Tala Hamza Zinc Project. This could potentially enhance investor confidence in Terramin's growth prospects. The involvement of Sinosteel MECC, with its extensive track record in international projects, adds credibility and assurance of successful project execution.
Investor Reaction:
Analysts are likely to view the signing of the EPC contract as a positive step forward for Terramin Australia. The project's scale and the involvement of a reputable contractor like Sinosteel MECC may boost investor confidence and attract interest from stakeholders looking for growth opportunities in the mining sector.
Conclusion:
Terramin Australia's strategic move to partner with Sinosteel MECC for the Tala Hamza Zinc Project is a significant step forward. Investors should keep an eye on the project's progress and consider the potential long-term benefits of this development. As construction begins, the project's impact on Terramin's market position and financial performance will become more apparent.