Mozambique titanium mine on course

Posted On Tuesday, 21 October 2003 02:00 Published by eProp Commercial Property News
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Kenmare Resources would start construction of its Moma titanium mine in Mozambique next year and production was still on course to come on stream in 2005, officials said last week

 

G clifton

 

 

 

 

 

 

 

 

Maputo - Kenmare Resources would start construction of its Moma titanium mine in Mozambique next year and production was still on course to come on stream in 2005, officials said last week.

"Production will start in the latter half of 2005," said Gareth Clifton, a senior executive at Kenmare Resources.

He said the European Investment Bank had approved a loan of e55 million (about R464 million) while the African Development Bank would lend Kenmare $40 million for the project.

Banks from Germany and South Africa would decide on financing Kenmare in Mozambique once it finalised a mine construction contract.

He said the contract would be concluded shortly, but gave no specific time frame or which firm was likely to get it.

"This project is at a very advanced stage," said Estevao Tomas Rafael Pale, the chief of mines in the mining and energy ministry.

"Next year they will start building the mine infrastructure at Moma."

Kenmare aims to annually produce 600 000 tons of ilmenite, 13 000 tons of premium-grade rutile and 52 000 tons of premium-grade zircon - all titanium minerals used in the hi-tech, plastic and paint industries.

The key market for Kenmare for the Mozambique production would be the US, Europe and Asia, Clifton said.

Since the end of a 16-year civil war in 1992, the mining sector in Mozambique has attracted billions of dollars in investment. Globally diversified mining company BHP Billiton in August completed the expansion of its Mozal aluminium smelter, which now has a capacity of 506 000 tons a year.

Under World Bank guidance, Mozambique has drawn up a new mining law, fiscal code and a geological mapping of the country. Mozambique is said to have some of the most attractive titanium deposits in the world, attracting interest from various players.

Last modified on Wednesday, 16 April 2014 15:08
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