• Project cost rises to $415 million from $341 million in 2018 study
• Expected annual zinc output increases significantly, with added lead production
• Financing remains the next key step as Algeria backs the project

Australia’s Terramin has raised the estimated cost of developing the Tala Hamza zinc mine in Algeria to $415 million, reflecting both technical adjustments and shifting market conditions.

The updated figure appears in a revised feasibility study released on Monday, March 30. It marks a notable increase from the $341 million projected in the initial 2018 study.

The higher cost comes with stronger production expectations. The project is now expected to produce around 178,000 tons of zinc concentrate per year, up from 129,300 tons previously forecast. It will also yield about 33,000 tons of lead annually as a byproduct.

The mine is designed to operate over 20 years, with the initial investment expected to be recovered by the fourth year of production. The project’s after-tax net present value stands at $640 million, with an internal rate of return of 24%.

The update follows the recent start of preparatory work, after several months of delay. The next major step is securing financing for construction. Terramin says it has support from Algeria’s Investment Promotion Agency (AAPI) and is in talks with a large state-owned bank to arrange debt financing.

The project is majority-owned by the Algerian state, which holds a 51% stake, while Terramin owns the remaining 49%. The mine is part of Algeria’s broader effort to diversify an economy still heavily reliant on hydrocarbons. Mining currently accounts for only about 1% of the country’s GDP.

The project also comes at a time of mixed conditions in the global zinc market, where demand remains weak. According to Trading Economics, zinc futures are trading around $3,150 per ton, close to their lowest levels since December.

Aurel Sèdjro Houenou