Alvenius: Aquarius to Algerian Gold



ENOR has a fleet of Caterpillar articulated dump trucks ready to roll.
Although by area it is the second largest country in Africa, Algeria is not one of the continent’s major mining economies. There is a tradition of iron ore and phosphate rock mining but overall, the government believes, the nation’s non-hydrocarbon mineral resource base remains underexploited. Progress has been spotty but a fresh start is under way, propelled by the U.K.-based company GMA Resources and suppliers such as Swedish piping specialist Alvenius Industrier. The country’s second gold operation, at Amesmessa, should first pour late in 2007.

The project to exploit gold resources discovered during the 1970s in the province of Tamanrasset started in 1997. The two deposits of first interest, Tirek and Amesmessa, are located 2,400 km south of Algiers, near the southern tip of Algeria and close to the border with Mali. The Enterprise d’Exploitation des Mines d’Or (ENOR) was formed by various financial and industrial state-owned organizations initially to develop a mine at Tirek, which is located toward the northern end of a corridor of gold mineralization that extends about 85 km southward down to Amesmessa. This operation, built with assistance from the South African company MDM, started up in 2001.

Also in 2001 the government introduced a new legal and regulatory system intended to encourage foreign and private investment in mining and in May that year ENOR sought a partner to further develop Tirek and to exploit Amesmessa, possibly at a rate of 90,000 oz/y. The Australian entrepreneur Colin Ikin formed Gold Mines of Algeria (GMA) and proposed to double capacity at Tirek, develop a 650-mt/d operation at Amesmessa, and conduct exploration on ENOR’s 1,400 km2 permit area. A deal was agreed in 2003 but some time after GMA was taken over by GMA Resources plc, which effectively acquired a 52% interest in ENOR through an earn-in by exploration and feasibility funding arrangement that was completed in 2006. Unfortunately, the bankable feasibility study results, based on conventional technology, were not encouraging. However, during the same period, both the shareholder blocks in ENOR underwent changes that have apparently been positive. GMA Resources built a very relevantly experienced management team in London and on-site, and the 48% stake held by Algerian firms was first consolidated into the technically and commercially strong Sonatrach organization and then consolidated with other mining enterprises within one part of Sonatrach.


As featured in Womp 07 Vol 8 - www.womp-int.com