Mozambique: Exports from Moma mine increased by 4% in 2024

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Mozambique: Exports from Moma mine increased by 4% in 2024

1:22 CAT | 20 Jan 2025

File photo: Kenmare Resources

Exports from the Moma mine in Nampula province, northern Mozambique, one of the world’s largest producers of titanium and zircon, grew by 4% in 2024, to more than one million tonnes, mining company Kenmare announced today.

According to information provided to the market by Kenmare Resources, which operates the mine, shipments of various finished minerals totalling 1,088,600 tonnes (heavy sands, zircon, ilmenite and rutile) were made throughout last year, mainly in the second half of the year.

“Shipments are expected to exceed production in 2025, supported by high levels of stock of finished products,” adds the same information from Kenmare.

“Demand for all types of Kenmare products remained robust in 2024 and sales are expected to continue to exceed production in 2025,” says Kenmare, an Irish company that operates in Mozambique through subsidiaries in Mauritius.

The company is one of the world’s largest producers of mineral sands, listed on the London and Dublin stock exchanges, and production in Mozambique accounts for approximately 7% of global titanium raw materials, with customers in more than 15 countries using its heavy minerals in paints, plastics and ceramics.

“Kenmare delivered a strong result in 2024, exceeding the midpoint of our production guidance for ilmenite and the upper end of the guidance ranges for all other products. We also surpassed the two million hours worked mark,” says Kenmare’s CEO, Tom Hickey, quoted in the document. Kenmare paid out around US$48 million (€46.5 million) in dividends in 2024 and invested US$140 million (€135.7 million).

The Moma mine contains reserves of heavy minerals including titanium, ilmenite and rutile, which are used as raw materials to produce titanium dioxide pigment, as well as a relatively high-value zirconium silicate mineral, zircon.

The mining company announced in April 2023 that it planned to mine a new seam within two years in the Moma concession, signalling the mine’s longevity and profitability.

Kenmare announced last month that it would not be possible to complete the renewal of the Moma mine by December 21, and would continue to operate it until the agreement with the government was concluded.

“We are pleased that the government has confirmed our ability to continue operating under the existing terms during this interim period and that the process can be concluded in an orderly manner,” the mining company’s CEO had previously stated.

At issue is the renewal of the Moma Exploration Implementation Agreement, under which Kenmare conducts its mineral processing and export activities, which expired on December 21, with negotiations with the Mozambican government for a new agreement still pending.

The company had previously assumed delays in the renewal, due to the country’s electoral process.

In the meantime, Mozambique’s Agency for the Promotion of Investment and Exports “indicated that the company’s existing rights and benefits remain in full force and effect pending the conclusion of the process”, so “Kenmare can continue to process minerals and export final products in the same way as it currently does”.

Source: Lusa