Terramin Advances Tala Hamza Zinc Project with 2.0 Mtpa Throughput and Robust Economics

Project Scale and Resource Update

Terramin Australia Limited has unveiled a significant update to its Tala Hamza Zinc Project in northern Algeria, with a revised Mining Study that boosts the planned processing capacity to 2.0 million tonnes per annum (Mtpa) from the previous 1.32 Mtpa. The project boasts a substantial Mineral Resource of approximately 53 million tonnes grading 5.3% zinc and 1.3% lead, including an Indicated Resource of 44 million tonnes. This upgrade reflects a strategic shift to a more selective underground mining method, Underhand Drift and Fill, which supports higher throughput and improved operational control.

Financial Outlook and Capital Requirements

The updated study projects a 20-year mine life with average annual production of around 178,000 tonnes of zinc concentrate at 51% zinc and 33,000 tonnes of lead concentrate at 58% lead. Financially, the project is robust, with a pre-production capital expenditure estimated at US$415 million and total life-of-mine capital costs around US$455 million. The post-tax Net Present Value (NPV) discounted at 8% stands at US$640 million, supported by an Internal Rate of Return (IRR) of 23%, and a payback period of approximately four years from first concentrate production. Operating costs are competitive globally, with a C1 cash cost of US$0.56 per pound of payable zinc and an All-in Sustaining Cost (AISC) of US$0.61 per pound.

Project Development and Approvals

Early works have commenced following the completion of land acquisition and the successful relocation of affected residents. The project holds all necessary approvals, including the Mining Permit granted in May 2023, which covers all operational areas. Infrastructure advantages include proximity to the deep-water Port of Bejaia, reliable power supply from SONELGAZ, and access to a skilled local workforce. The project is formally registered with the Algerian Investment Promotion Agency, securing tax exemptions, customs duty relief, and government support for infrastructure and financing.

Funding and Strategic Partnerships

Terramin is in advanced negotiations with a major Algerian government bank for a significant debt funding package, reflecting the project’s national importance. The joint venture structure includes Terramin holding 49%, with Algerian state entities ENOF and ORGM holding the remainder. This partnership underpins strong local support and aligns with Algeria’s economic development goals. The company emphasises its commitment to environmental and social responsibility, adhering to international best practices and ensuring minimal community impact.

Outlook and Expansion Potential

The Tala Hamza deposit remains open to the east and southeast, offering potential for resource expansion and extended mine life. Terramin plans to progress with detailed engineering, geotechnical drilling, and optimisation studies as it moves toward full-scale development. The project’s competitive cost structure, strategic location, and government backing position it as a compelling zinc-lead development opportunity on the global stage.