Name of the Project
Tala Hamza zinc/lead project.

Location
Mediterranean coast of Algeria.

Project Owner/s
The project is 100% owned by Bejaia Zinc & Lead Spa (BZL). Terramin Australia holds a 49% interest in BZL and maintains the management rights for the project. The remaining 51% is held by two Algerian State-owned entities: Enterprise Nationale des Produits Miniers Non-Ferreux et des Substances Utiles Spa, which holds 48.5%, and the Office National de Recherche Géologique et Mineère, which holds 2.5%.

Project Description
Tala Hamza is recognised as one of the largest undeveloped zinc and lead deposits in the world. The project contains a mineral resource of about 53-million tonnes grading 5.3% zinc and 1.3% lead. The project is supported by probable ore reserves of 25.9-million tonnes grading 6.3% zinc and 1.8% lead, which sustain an expected mine life of more than 20 years.

A definitive feasibility study (DFS) on the project was completed in mid-2018. The DFS originally proposed a mining and processing throughput of 1.32-million tonnes of ore a year to produce an average of 129 300 t/y of zinc concentrate and 26 000 t/y of lead concentrate. 

However, the 2020 optimisation study increased this planned throughput by 50% to a rate of two-million tonnes a year. This updated plan is expected to enhance project returns by targeting an output of about 170 000 t/y of zinc and 30 000 t/y of lead while maintaining the 20-plus year operational life span through the inclusion of additional mineralised material.

In March 2022, the joint venture partners endorsed the optimisation study and agreed to advance the project towards development.

The project includes the construction of a two-million-tonne-a-year process plant, an underground mine, backfill plant, dry stack tailings storage facility, and associated infrastructure.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
The 2018 DFS estimates an after-tax net present value, at an 8% discount rate, of $303-million to $553-million and an internal rate of return of 14% to 19%, with a payback of seven to nine years.

Capital Expenditure
The 2018 DFS estimates preproduction capital at $341.4-million. 

Planned Start/End Date
Not stated.

Latest Developments
The project has been formally registered with the Algerian Investment Promotion Agency, a step that activates a package of State-backed incentives and development support measures. 

According to the company, these include a corporate tax exemption of up to seven years, with possible extension, as well as VAT and customs-duty relief during the construction phase. The registration also gives the project access to infrastructure support, including high-voltage power and access roads, and opens the way to concessional and government-supported funding mechanisms. Terramin has said that these measures should lower upfront capital needs and strengthen the project’s economics. 

The company has indicated that the Algerian government is already advancing supporting works for the project, including power-supply infrastructure, road access and port and logistics facilities in the Bejaia region. This backing builds on recently secured land access and follows the start of site-preparation activities, helping to reduce development risk and advance the project closer to execution. 

Financing talks are also continuing, with in-principle support from Algerian financial institutions for a significant share of development capital. 

Key Contracts, Suppliers and Consultants
GO Mining (desktop-level mine optimisation study) and Sinosteel Equipment & Engineering Co (engineering, procurement and construction contract).

Contact Details for Project Information
Terramin Australia, tel +61 8 8536 5950 or email info@terramin.com.au.