Terramin Australia Limited (Terramin ), through the joint venture company, Bejaia Zinc & Lead Spa (BZL) (formerly Western Mediterranean Zinc Spa), has completed an updated Mining study for the development of the Tala Hamza Zinc Project (Tala Hamza) near Bejaia in northern Algeria.
The updated Mining Study covers a zinc and lead deposit in the Mining Permit 6911 (PXM 6911), an area of 234 hectares held by BZL. The most significant change from the 2018 DFS, which constitutes a material change to the previously released study to the ASX on 29 August 2018, was the increase in Project throughput from 1.32 mtpa to 2.0 mtpa, accompanied by a reduction in the mining cutoff grade.
Updated flowsheets, capital and operating costs, confirm the viability of an underground operation with a 2.0 mtpa capacity process plant, which can deliver an approximate average of 178 ktpa of zinc concentrate at 51 % Zn (88 % recovery) and 33 ktpa of lead concentrate at 58 % Pb (68 % recovery), at an average C1-cash cost of US$0.56/lb and All-in Sustaining Cost (AISC) (including royalty) of US$0.61/lb.
Early works have commenced following the finalization of the land acquisition and the successful relocation of the affected residents. These activities include site access, clearing works, and geotechnical drilling.
Negotiations are at an advanced stage with respect to the establishment of a significant debt facility with a major Algerian Government bank.
Tala Hamza has been formally registered with the Algerian Investment Promotion Agency (AAPI). This registration secures a range of investment incentives and formalizes key government support measures for project development. Registration with AAPI provides access to a suite of incentives, including:
- Exemption from corporate tax for up to 7 years, with potential extension
- Exemption from VAT and customs duties during construction
- Provision of key infrastructure, including high voltage electricity and access roads
- Access to concessional financing support and government-supported funding frameworks
Terramin's Executive Chair, Bruce Sheng, commented:
“The updated Mining Study confirms the strong economics of a significantly expanded Tala Hamza Zinc Project, now scaled to 2.0 mtpa throughput.
With all major approvals secured and early works already underway, the Project is firmly advancing into development.
Tala Hamza benefits from exceptional infrastructure, including close proximity to a deep-water port, reliable and affordable power, and access to a skilled local workforce, positioning it as one of the most compelling zinc-lead development opportunities globally.
We are grateful for the continued support of the Algerian Government and our local partners, who remain instrumental in bringing this nationally significant project to life.”