How Will Algeria’s Mining Reforms Propel Terramin’s Zinc and Copper Ambitions?

Progress at Tala Hamza Zinc Project

Terramin Australia has reported meaningful progress in its June 2025 quarter activities, notably at the Tala Hamza Zinc Project in Algeria. The company completed two of four planned geotechnical drill holes critical for finalising the engineering design of the underground mine’s air intake and exhaust shafts. The remaining two holes are scheduled for completion in the next quarter, underscoring steady advancement toward project development.

Located near the Mediterranean coast and close to key infrastructure, Tala Hamza is one of the world’s largest undeveloped zinc and lead deposits. Terramin holds a 49% stake and management rights, with Algerian government entities holding the balance. The project’s scale and strategic location position it well for future growth.

Algerian Mining Reforms Boost Investment Outlook

Significantly, Algeria’s parliament passed reforms in June 2025 that raise the foreign ownership cap from 49% to 80% and introduce a streamlined 30-year mining permit covering both exploration and extraction. These changes aim to attract foreign investment and diversify Algeria’s economy beyond hydrocarbons.

For Terramin, these reforms enhance the investment framework, offering greater operational flexibility and the potential to increase equity stakes in Algerian projects. This regulatory shift could accelerate development timelines and improve project economics, making Tala Hamza and future ventures more attractive.

Kapunda Project Advances with Regulatory Approval

In South Australia, Terramin’s Kapunda In Situ Copper Recovery Project reached a key milestone by securing final government approval to commence full in-situ recovery testing using lixiviants. Operated by Environmental Copper Recovery (ECR), which has earned a 75% interest, the project began testing in July with results expected in the September quarter. This phase is crucial for evaluating the commercial viability of recovering copper and gold from historic mining areas.

Legal Challenges at Bird in Hand Gold Project

Meanwhile, the Bird in Hand Gold Project faces ongoing regulatory hurdles. After the South Australian Supreme Court dismissed Terramin’s judicial review of the government’s refusal to grant mining approvals earlier this year, Terramin lodged an appeal. The hearing is scheduled for November 2025. Until then, the adjacent Angas site remains under care and maintenance, reflecting the company’s cautious approach amid regulatory uncertainty.

Financial Position and Corporate Outlook

Terramin’s cash balance stood at a modest $0.1 million at quarter-end, but the company benefits from extended financing facilities totaling $4.925 million, provided by major shareholder Asipac Group Pty Ltd. These facilities, extended through mid-2026, offer critical liquidity to support ongoing operations and project development while longer-term financing options are explored.

Exploration activities continued at the South Gawler Ranges Project, where drilling did not immediately reveal significant mineralisation, but JOGMEC’s investment milestone allows it to increase its stake to 50.1%. This reflects ongoing collaboration and shared risk in exploration ventures.