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Highlights
- Major Zinc-Lead Deposit: Tala Hamza holds 53Mt of resources, grading 5.3% zinc and 1.3% lead, with a 20-year mine life.
- Joint Venture Progress: Terramin owns 49% of the project, partnering with Algerian state-owned companies holding the remaining 51% stake.
- EPC Contract Secured: A US$336 million deal with Sinosteel will deliver a 2Mtpa process plant, underground mine, and infrastructure.
Terramin Australia Ltd (ASX:TZN) has taken a significant step forward at its Tala Hamza zinc project in Algeria, one of the world’s largest undeveloped zinc and lead deposits, with drilling work set to begin. This marks a crucial phase in unlocking the site's potential, as the company works alongside its Algerian joint venture partners to develop a long-life, globally significant mining operation.
The joint venture structure gives Terramin a 49% stake, with the remaining 51% split between Enterprise Nationale des Produits Miniers Non-Ferreux et des Substances Utiles Spa (ENOF) and Office National de Recherche Géologique et Minière (ORGM). The project is strategically located near Béjaia, providing access to vital infrastructure, including an airport and a deep-water port.
Drilling and Development Timeline
Initial drilling at Tala Hamza will focus on geotechnical studies to inform underground mine design. Drill rigs are scheduled to arrive in November, with administrative facilities to follow in December. This work will pave the way for more intensive resource evaluation and infrastructure upgrades.
In November, Terramin awarded a US$336 million EPC contract to Sinosteel Equipment & Engineering Co Ltd to construct a 2 million tonnes per annum (Mtpa) processing plant, along with underground mine development and associated infrastructure. This deal ensures the project is backed by a major global player in mining construction, accelerating progress towards production.
A Boost for the Global Zinc Market
With a resource estimate of 53Mt at 5.3% zinc and 1.3% lead (using a 2.5% zinc equivalent cutoff), Tala Hamza is poised to become a key supplier in the global zinc market. Zinc, a critical material for galvanizing steel, batteries, and renewable energy infrastructure, is in growing demand worldwide, adding further importance to the project.
The next stages of work will involve expanding drilling operations, refining resource models, upgrading local infrastructure, and strengthening ties with the Algerian government and local communities to support sustainable project development.
Market Reaction and Outlook
Terramin shares have been trading at 8 cents, but with drilling set to begin and major construction contracts secured, investor sentiment could shift as project milestones are hit.
