Algeria Raises Foreign Mining Ownership Cap to 80%, Terramin Drills Ahead

Progress at Tala Hamza

Terramin Australia Limited (ASX – TZN) has provided a promising update on its Tala Hamza Zinc Project in Algeria, reporting the successful completion of two out of four planned geotechnical drill holes. These drillings are critical for finalising the engineering design of the underground mine’s ventilation shafts, a key infrastructure component. The remaining two drill holes are slated for completion in the third quarter of 2025, subject to operational conditions.

Algeria’s Mining Sector Reforms

On 16 June 2025, Algeria’s parliament enacted significant amendments to its mining legislation, notably increasing the cap on foreign ownership in mining projects from 49% to 80%. This legislative shift also introduces a streamlined permitting process, replacing multiple permits with a single mining permit valid for up to 30 years, encompassing both exploration and extraction phases. These reforms are part of Algeria’s broader economic diversification strategy, aiming to attract foreign investment and develop its rich mineral resources beyond its traditional hydrocarbon sector.

Implications for Terramin

For Terramin, these reforms could be transformative. The increased foreign ownership allowance offers the company greater operational flexibility and the potential to raise its equity stake in current and future Algerian projects. The streamlined permitting process facilitates long-term planning and development, reducing bureaucratic hurdles that often delay mining ventures. Executive Chair Bruce Sheng welcomed the reforms, highlighting their alignment with Terramin’s strategic growth objectives and expressing optimism about advancing Tala Hamza alongside Algerian partners.

Strategic Outlook

Terramin’s 49% interest in Bejaia Zinc & Lead Spa, which operates the Tala Hamza project, positions it well to capitalize on Algeria’s evolving mining landscape. The company’s resource base at Tala Hamza remains robust, with measured and indicated zinc and lead resources supporting the project’s viability. As Algeria opens its doors wider to foreign investors, Terramin’s ability to deepen its involvement could enhance its long-term value proposition.

However, the completion of the remaining drill holes and the practical application of the new laws will be closely watched by investors. The reforms signal a positive shift, but execution risks and geopolitical factors remain considerations in this emerging mining jurisdiction.