In a move that could redefine foreign investment in North African mining, Algeria has announced sweeping reforms to its mining policy—news that has been welcomed enthusiastically by Terramin Australia (ASX: TZN) and its joint venture partner, Bejaia Zinc & Lead Spa. These reforms arrive just as Terramin’s Tala Hamza Zinc Project—located in Algeria’s Bejaia Province and considered among the largest untapped zinc-lead resources globally—prepares for its next phase of development.
A New Dawn for Mining in Algeria
At the heart of these reforms is the relaxation of foreign ownership caps, a shift that aligns Algeria’s regulatory environment more closely with global investment standards. This is particularly beneficial to companies like Terramin, which previously had to operate under a 49% ownership limitation within Algerian ventures.
Now, with increased operational flexibility, foreign companies can hold a majority stake, facilitating smoother financing, accelerated decision-making, and stronger project control.
“These reforms are exactly the signal global miners were waiting for,” said Bruce Sheng, Chair of Terramin. “They reflect Algeria’s commitment to becoming a modern, competitive mining jurisdiction.”
Tala Hamza’s project site in the Bejaia Province.
Source: Getty Images/Sam Edwards
About the Tala Hamza Zinc Project
The Tala Hamza Zinc Project is a joint venture between Terramin and its local Algerian partners, operated through Bejaia Zinc & Lead Spa. Located just 15 kilometres from the Port of Bejaia, the project enjoys strategic access to Mediterranean shipping routes—crucial for future exports of zinc and lead concentrates.
Exploration activities have confirmed a high-grade deposit with an estimated total mineral resource of over 68 million tonnes, containing both zinc and lead. The company has recently completed geotechnical drill holes in preparation for underground development planning.
According to Terramin, the project offers low strip ratios, competitive development costs, and a strong ESG profile, with the potential to supply critical base metals for global markets amid growing demand from battery manufacturers and construction sectors.
Strategic Benefits for Terramin and Algeria
For Algeria, the reforms come as part of a wider economic diversification push. Long reliant on hydrocarbons, the country now aims to position mining as a pillar industry, attracting capital and creating local jobs. The Tala Hamza project could be a flagship example of this new trajectory.
For Terramin, the policy shift represents a long-awaited green light to accelerate development. With the foreign ownership cap lifted, the company is now in a stronger position to secure international funding, streamline project approvals, and scale operations without being hamstrung by regulatory red tape.
Sheng highlighted that the reforms arrive at a moment of renewed investor interest:
“This is a transformational opportunity—not only for us but for Algeria’s broader mining sector. With the right support, Tala Hamza could become a model for sustainable resource development in the region.”
Zinc concentrate storage and shipping preparation concept for Bejaia port.
Source: Arab Sea Ports Federation
Also Read: Lear Analyst Ratings Updated Amid Market Momentum
Industry Context: Zinc’s Strategic Appeal
Zinc and lead remain essential for a range of industries—from galvanisation and battery anodes to renewable energy infrastructure. As critical raw materials for energy transition technologies, their importance has surged in recent years.
At a time when many global mining jurisdictions are tightening regulation, Algeria’s reformist stance could give it a competitive edge in attracting new resource projects—especially in base metals.
In fact, mining analysts have flagged the Tala Hamza Zinc Project as one of the most promising assets in Africa’s zinc sector. With growing pressure on supply chains, particularly from Europe and East Asia, the project’s proximity to deepwater export routes enhances its appeal.
Investor Takeaway: Algeria’s Reforms Could Unlock New Value
For Terramin shareholders, the Algerian government’s policy shift could mark a significant turning point. Not only does it enhance the value proposition of the Tala Hamza Zinc Project, but it also de-risks future investment rounds and project execution timelines.
As markets seek new sources of zinc outside traditional regions like China and South America, Algeria—with its new rules and resource wealth—might become a surprise contender.
