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“An increase in terramin’s participation could soon see the light of day”
Tala Hamza zinc and lead project, in the wilaya of Béjaïa
In its August issue, the Australian specialized magazine, Australia’s Paydirt, reported an increase in terramin’s participation in the Tala Hamza zinc and lead project in the wilaya of Béjaïa thanks to the new law framing the mining sector, now in force. “An increase in terramin’s participation in the Tala Hamza project may soon see the light of day,” reports the magazine. Noting that Algeria’s recent decision to increase the share of foreign property in projects is an additional sign of its desire to diversify its mining industry beyond gas.
The country, explains the magazine, shows an increasing interest in the diversification of its economy beyond hydrocarbons. Finding that this revision of mining legislation should attract more foreign investments to exploit resources such as zinc, phosphate, iron ore, lead, copper, gold and lithium. “The moment is favorable for Terramin, which prepares the construction of an underground mine and a treatment plant on its Tala Hamza zinc project. “Indicates the same source. Recalling that currently, the project is used as part of a joint venture, Terramin holds 49 % of the shares, the rest belonging to the Algerian government, which also bought the land for 25 million US dollars. The new law governing mining activity modifies foreign participation in mining projects allowing foreign companies to hold up to 80 % of mining projects, against a maximum of 49 % before. Rule 49/51 is deleted for the exploitation of mines, but remains in force for careers. Article 101 specifies that the national company can participate within the limit of 20% in the capital of the legal person by Algerian law, partially or completely owned by foreigners, when this legal person requests the granting of an operating permit.
The new law also provides for a simplified authorization procedure, with a single mining permit valid 30 years covering both exploration and extraction.
Among the foreign mining groups activating in Algeria, the Australian Terramin Australia Ltd, which is on the zinc and lead project of Tala Hamza in the wilaya of Béjaïa.
The Australian group welcomed the increase in foreign participation in mining projects in Algeria, ratified in the new law governing mining activities. Seeing it as an opportunity to increase his participation in the project which is currently 49%, 51% being held by the Algerian State. Thus, with the new regulations, the mining group would consider discussions with the Algerian authorities to increase its participation up to 80% in the project.
Rabah M.