Overview
- A Definitive Feasibility Study was completed in 20181. An updated 2025 Mining Study has since been completed, confirming the strong economics of the project at a nominal 2.0 Mtpa throughput2.
- The project is fully permitted with all environmental approvals in place. Land acquisition is complete, with all affected residents relocated. Site preparation activities commenced in March 2026, including site access and clearing works, establishment of operational and laydown areas, and early ground preparation near planned infrastructure locations.
- The Tala Hamza Zinc Project is owned by the Bejaia Zinc & Lead Spa (BZL), a joint venture vehicle in which Terramin holds a 49% shareholding with the remaining 51% held by two Algerian government-owned companies: Enterprise Nationale des Produits Miniers Non-Ferreux et des Substances Utiles Spa (ENOF) (48.5%) and Office National de Recherche Géologique et Minière (ORGM) (2.5%). Terramin holds management right over the project
- Extensive established infrastructure in place with attractive low power and fuel costs.
- The project has the potential to be in the top ten largest zinc mines in the world.
1 Refer to ASX announcement 29 August 2018
1 Refer to ASX announcement 30 March 2026
Project Status — April 2026
- Site preparation underway — land fully acquired, all residents relocated
- Mining Permit (PXM 6911) in place — all Algerian regulatory approvals satisfied
- AAPI registration confirmed — investment incentives secured (refer ASX 25 March 2026)
- Debt financing discussions at advanced stage with major Algerian Government bank
- EPC contract with Sinosteel MECC in place for process plant and underground mine
- Algerian mining law reforms (June 2025) lifted foreign ownership cap to 80% and introduced streamlined permitting — strengthening the long-term investment framework for Tala Hamza
Location
- The Project is located in Algeria on the Mediterranean Sea, 15km from the regional city of Béjaia.
- The city of Béjaia provides extensive infrastructure including an international airport and deep water port.
- Location benefits include local workforce, grid power, abundant water and proximity to European zinc smelters.
Mining Studies
In March 2026, Terramin completed an updated Mining Study for the Tala Hamza Zinc Project, scaled to 2.0 Mtpa throughput. Key outcomes are summarised in Table 1: Tala Hamza Zinc-Lead Project: Key Study Outcomes – Key Technical and Financial Parameters (Base Case).
Refer to ASX announcement 30 March 2026 for full technical detail, including the cautionary statement regarding production targets and forecasts.
Cautionary Statement Regarding Production Targets and Forecasts
The production target and associated financial forecasts presented in this announcement are based on Mineral Resources and material assumptions outlined in this release and supported by a Mining Study. The production target does not include any Ore Reserves. The production target includes a minor component (<0.1%) of Inferred Mineral Resources. Inferred Mineral Resources are considered to have a low level of geological confidence and there is no certainty that further exploration work will result in the conversion of Inferred Mineral Resources to Indicated or Measured Mineral Resources, or that the production target itself will be realised. The financial outcomes presented, including Net Present Value (NPV), Internal Rate of Return (IRR), payback period, and Life-of-Mine revenue, are derived from the production target and associated study assumptions. There is no certainty that the assumptions underpinning the production target will be achieved or that the financial forecasts will be realised.
Table 1: Tala Hamza Zinc-Lead Project: Key Study Outcomes – Key Technical and Financial Parameters (Base Case)
| Technical Parameters | Financial Parameter Estimates | ||
| Indicative Production Schedule1 | ~178 ktpa zinc concentrate (~93 ktpa contained zinc) |
Commodity Prices assumptions2 | US$1.27/lb zinc US$0.91/lb lead |
| ~33 ktpa lead concentrate (~19 ktpa contained lead) |
C1 Costs (LOM ave)3 | US$0.56/lb | |
| Material Mined | ~37 Mt @ 6.0% Zn and 1.6% Pb | AISC (LOM ave)4 | US$0.61/lb |
| Mineral Resource | 53Mt at 5.3% zinc and 1.3% lead |
Indicative Start-up Capital5 | US$415M |
| Indicative Concentrate Grade (LOM)1 | ~51% Zn concentrate ~58% Pb concentrate |
Indicative Sustaining Capital | US$40M |
| Indicative Processing Rate1 | ~2.0 mtpa | Indicative Free Cashflow (post-tax nominal) |
~US$2.19B |
| Indicative Mine Life | ~20 Years | Indicative NPV8 (post-tax nominal)6 | ~US$640M |
| Indicative Payback Period | ~4 Years | Indicative IRR (Post-tax nominal)6 | ~23% |
The forecast financial information contained in this announcement is based on a number of material assumptions outlined in this release. These include, but are not limited to, assumptions about commodity prices, capital and operating costs, production rates, and regulatory approvals. While Terramin considers all material assumptions reasonable, there is no certainty that they will prove correct or that the projected outcomes will be achieved.
1 Schedule Production and Concentrate Grade represent the average values following initial operational ramp up period (approx. 2 years).
2 Zinc and lead prices are assumed to US$2,800 and US$2,000 respectively. Prices are escalated at 2% p.a.
3 C1 Costs are defined as direct cash operating costs produced, net of by-product credits, divided by the amount of payable zinc produced. Direct cash operating costs include all mining, processing, transport, treatment and refining costs and smelter recovery deductions through to refined metal. Costs are escalated at 2% p.a.
4 All-in Sustaining Costs (AISC) includes C1 plus sustaining capital, indirect costs and royalties.
5 Start-up Capital Costs represents pre-production capital requirements exclusive of working capital and sustaining capital.
6 NPV has been discounted using a discount rate of 8% and is a post-tax nominal calculation. NPV and IRR are discounted from ramp up of start-up capital.
Algeria Mining Reforms
In June 2025, the Algerian Government introduced significant reforms to its mining regulatory framework, including:
- Lifting the foreign ownership cap in mining projects from 49% to 80%
- Introduction of a streamlined single permit covering both exploration and extraction, valid for up to 30 years
- Broader strategy to attract foreign investment into Algeria’s mineral resources sector, targeting zinc, phosphate, copper, gold and lithium
These reforms complement the existing government support for Tala Hamza and provide a strengthened framework for long-term project development and potential future investment
Recent Developments
In 2020, Terramin completed an optimisation study in respect of the Tala Hamza Zinc Project that considered an increase in the mining and processing to an average of 2.0 mtpa of ore (up from 1.32 mtpa). This study indicated that project returns can be further enhanced.
In March 2022, the joint venture partners endorsed the optimisation study and agreed to advance the Tala Hamza Zinc Project towards development (‘Decision to Mine’) and in May 2023 the Algerian mining regulator issued the Mining Permit for Tala Hamza.
The issue of the Mining Permit means that Tala Hamza has satisfied all Algerian regulatory, financial and environmental requirements and that it can now proceed towards development. In collaboration with our Algerian partners, this Mining Permit will allow for the mining and processing of 2.0 mtpa of ore. The Mining Permit encompasses all the area of land required for operation of the mine including mining, processing, haul roads, ore stockpiles, tailings dams, concentrate handling and maintenance and administration.
In October 2024, the Algerian Government completed the acquisition of 234 hectares of land which covers the footprint of the Mining Permit at a total cost of approximately US$30m. Site preparation commenced in March 2026, following completion of land acquisition and the successful relocation of all affected residents. The Algerian Prime Minister and senior government officials visited the project site in March 2026, reflecting the national significance of Tala Hamza. Geotechnical work supporting the final underground mine design is progressing alongside these early activities.
In March 2026, Terramin completed an updated Mining study to reflect the current status of the project. Financing discussion with a major Algerian Government owned bank are well advanced.
The Algerian Government continues to deliver key infrastructure to support the project, at government cost, including:
- Berth at the Port of Bejaia — construction completed
- High-voltage power connection to Mining Permit — under construction
- Highway access ramps and bridge infrastructure — under construction
Cautionary Note Regarding Production Targets and Financial Forecasts
Financial and production forecasts presented on this page are based on the 2025 Mining Study (ASX announcement: 30 March 2026) and are subject to the cautionary statements contained in that announcement. The production target and associated financial forecasts are based on Mineral Resources and material assumptions outlined in that release and supported by a Mining Study. The production target does not include any Ore Reserves. There is no certainty that the assumptions underpinning the production target will be achieved or that the financial forecasts will be realised.
