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Plant upgrade secures long-term operations

UPCOMING UPGRADE Kenmare's largest mining plant, WCP A, is slated for an upgrade and transition to the Nataka ore zone

ALIGNED INVESTMENTS Kenmare's investment aligns with its commitment to community development through the company’s not-for-profit organisation Kenmare Moma Development Association

7th June 2024

By: Simone Liedtke

Creamer Media Social Media Editor & Senior Writer

     

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The upgrading and relocating of titanium and zircon producer Kenmare Resources’ wet concentrator plant A (WCP A), at its Moma titanium minerals mine, in Mozambique, is aimed at securing long-term production and sustainability, the miner tells Mining Weekly.

Kenmare is planning a significant investment of up to $341-million – from 2024 to the end of 2027 – to make this possible.

The miner operates three mining plants at Moma. The largest of these – WCP A – is slated for an upgrade and transition to the Nataka ore zone, which hosts over 70% of Moma’s nine-billion tonnes of mineral resources.

This transition is scheduled for late 2025 and is expected to secure production for decades to come, says the miner.

Transitioning WCP A to Nataka is expected to give Kenmare access to Moma’s mineral resources, which equates to a mine life of over 100 years at current production rates.

In 2023, Kenmare produced nearly one-million tonnes of ilmenite. The upgrade and transition of WCP A is projected to contribute to an increase in production to 1.2-million-tonnes a year after the upgrade.

The project is designed to maintain Kenmare’s first-quartile position on the industry revenue-to-cost curve, ensuring robust cash flow through the commodity price cycles, says Kenmare MD Michael Carvill.

He adds that the investment aligns with the company’s strategic goals and its commitment to community development through the company’s not-for-profit organisation Kenmare Moma Development Association (KMAD).

The capital cost for the upgrade and transition of WCP A to Nataka includes costs for additional WCP A infrastructure, with a definitive feasibility study scheduled before the end of the currently-underway second quarter.

“This significant investment is a further demonstration of our belief in our team and assets in Mozambique,” states Carvill, adding that the company has already invested about $1.4-billion in Moma.

Despite the remote location of the Moma mine, Carvill says Kenmare’s experienced team is well prepared for the project.

The company successfully relocated another mining plant in 2020 and has developed robust supporting infrastructure, including a power line connecting to renewable hydroelectric power from the Cahora Bassa dam, a dedicated port facility and a rotary uninterruptible power supply, related to improving power stability to the mineral separation plant.

Meanwhile, Carvill highlights the stable legislative environment of the country, as “the government of Mozambique has always upheld our licences and agreements, and we value this partnership highly”.

Kenmare’s products account for 7% of the country’s exports, while employing over 1 700 people, 97% of whom are Mozambican.

Kenmare has also been named the most transparent company in Mozambique for three consecutive years by the Centre for Public Integrity’s Extractive Industry Transparency Index.

Environmental Stewardship

Sustainability is central to Kenmare’s operations, with a long-term commitment to responsible environmental practices.

The transition to Nataka continues the company’s progressive land rehabilitation programme, allowing for timely land return to communities.

In addition, Kenmare planted 204 000 trees, including 151 000 indigenous saplings, in 2023, and is continuing with other reforestation efforts.

“We do not use toxic chemicals in our operations, and 90% of our electricity comes from renewable hydropower,” says Carvill.

Kenmare’s presence in Mozambique of more than 30 years has also fostered strong relationships with stakeholders and local communities, and although there are security concerns, its operations are quite a distance away from insurgency-prone areas.

“We have not experienced any issues with insurgency to date and continue to highly value the support of our partners,” confirms Carvill.

Kenmare plans to adapt to evolving economic, social and environmental challenges by focusing on local employment, increasing gender diversity and targeting net-zero emissions by 2040.

In 2023, the company reduced emissions by 14% year-on-year, primarily through renewable-energy initiatives.

Edited by Donna Slater
Features Deputy Editor and Chief Photographer

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