| ASX-listed Terramin Australia has announced a significant development in its Tala Hamza Zinc Project, located on the Mediterranean coast of Algeria. Over the past 12 months, its share price has risen 120% to 5.5 Aussie cents. A$115-million market cap Terramin said the Algerian government has completed the acquisition of all necessary land, covering 234 hectares, which allows the project to advance to the construction phase. This achievement marks a crucial step forward, enabling full access to the mining permit area and facilitating immediate construction work. The Project is owned by Western Mediterranean Zinc Spa, a joint venture vehicle in which Terramin holds a 49% shareholding with the remaining 51% held by two Algerian government-owned companies. |
A key use of zinc in renewable energy is for protection against corrosion of wind turbines. The market price of zinc has risen in 2024. Chart: TradingEconomics.com
A definitive feasibility study (DFS) completed in 2018 projected that the mine would have a lifespan of over 20 years, with an annual production of approximately 129,300 tonnes of zinc and 26,000 tonnes of lead.
Specific timelines for construction completion and production commencement are likely available only as construction progresses and further developments occur.
The DFS says:
| • Pre-production capital deployment period will be 24 months. • Base case project post-tax nominal NPV (8%) will be A$399m (US$303m) and IRR, 14%. • Project’s total earnings before interest, tax, depreciation and amortisation is expected to be US$1,909 billion. |
 AGM address, May 2023: "We have received the mining permit for the Tala Hamza Zinc Project. This is an enormous prize as Tala Hamza is a long-life low-cost world class project in a progressive jurisdiction on the doorstep of Europe." Press release, Oct 2024: “The securing of access to the land ...is a significant milestone as it now allows us to officially commence construction works for the project. Terramin is highly appreciative of the hard work and continued support of our Algerian partners and the Government. We are passionate for the future of this world class project.” --- Bruce Sheng (inset) Executive Chair, Terramin Australia |
Recent Developments
In May 2023, Terramin secured a mining permit for the Tala Hamza project from Algerian authorities.
This permit is pivotal as it confirms that all regulatory, financial, and environmental requirements have been met.
The project is set to process 2.0 million tonnes per annum (Mtpa) of ore, an increase from the 1.3 Mtpa anticipated in earlier feasibility studies.
This expansion enhances the project's expected returns over a projected 20-year mine life.
In addition to regulatory progress, Terramin has also secured a US$6.68 million investment to support its operations and further project advancements.
Significance of the Tala Hamza ProjectThe Project is positioned to become one of the largest developing zinc and lead deposits globally. |
See also: TERRAMIN: Sewing up financing deals in order to develop large mine in Algeria
