Terramin is building into a significant base metal production company through its acquisition strategy that requires its projects to be low on the cost curve for capital and operating costs. Its projects are usually close to infrastructure to ensure low development and operating costs.
Terramin has been focused on zinc for more than 10 years, filling a vacuum left when majors exited zinc exploration in the mid 1990’s. The lack of expenditure for a decade means there are very few large low-cost zinc deposits in the pipeline, while existing zinc deposits will decline or close.
For its acquisitions, Terramin follows strict criteria designed to minimise capital costs and start up time. The criteria include deposits of high grade core, proximity to infrastructure such as ports, roads, water and power, and potential for expansion.
The 400,000 tonne per annum Angas zinc mine, about 45 minutes from the city of Adelaide in South Australia commenced shipments of lead and zinc concentrates in July 2008. Sempra Metals and Concentrates Corp. has a life-of-mine offtake for the approximately 80,000 tonnes per annum of lead and zinc concentrates.
The Oued Amizour project in Algeria has several lead-zinc deposits and potential for more discoveries. The 55 million tonne Tala Hamza deposit is planned for completion of feasibility in 2009. The project is only 10km from a deep water port and city on the Mediterranean coast. It is potentially a strategic source of concentrates for smelters in Spain, Sardinia and northern Europe.
The Menninnie zinc project has a lead-zinc resource of 3.8 million tonnes and additional exploration is underway. Oz Minerals is managing the joint venture after completing an earn-in of 76%. Menninnie is close to significant infrastructure, particularly the Port Pirie lead smelter.
