• Works began after Algeria resolved land access issues
• Authorities spent $30 million relocating communities and securing project land
• Financing pending; $471 million project targets major zinc, lead output

Australian mining company Terramin said on Tuesday it has begun preparatory work at its Tala Hamza zinc and lead project in Algeria, after authorities resolved long-standing access issues that had delayed progress for several months.

$30 million to secure land access

In a 2018 definitive feasibility study, Terramin set out plans to develop a major zinc and lead operation at Tala Hamza, which could rank among the world’s ten largest zinc mines. However, construction had yet to begin, with the company previously citing a suspension of early works pending site access.

That issue has now been resolved. Algerian authorities completed the relocation of nearby communities, spending about $30 million to acquire land for the project, which has been set aside exclusively for mining operations, according to Terramin.

With access secured, the company has begun early-stage work, including site clearing and preparation of operational areas.

“The commencement of site preparation at Tala Hamza marks an important milestone. The resolution of land access constraints, which have hindered progress in recent quarters, now allows us to move forward with on-the-ground activities,” Executive Chairman Bruce Sheng said.

The project is majority-owned by the Algerian state through public institutions, which hold a 51% stake, while Terramin owns 49%. The start of operations was announced last week by Prime Minister Sifi Ghrieb during a site visit.

Authorities aim to position the mine as a boost to the mining sector, which accounts for about 1% of GDP, and to support efforts to diversify an economy heavily reliant on hydrocarbons.

Further steps ahead

Despite recent progress, key challenges remain, particularly financing. The latest estimates put development costs at around $471 million for a mine expected to produce about 170,000 tonnes of zinc and 30,000 tonnes of lead annually over a 20-year lifespan.

Few details have been disclosed about funding arrangements. Terramin said it will continue development planning and discussions with authorities. No firm timeline has been confirmed, although construction is expected to begin in 2026.

Beyond Tala Hamza, Algeria is advancing other large-scale mining projects. The Gara Djebilet iron ore mine entered production earlier this year, while the Bled El Hadba phosphate project is progressing in Tébessa.

Aurel Sèdjro Houenou