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Mozambique: Kenmare expects to reach agreement to continue operating Moma mine
5:16 CAT | 18 Oct 2024
File photo: Kenmare Resources
Mining company Kenmare Resources expects to succeed in renewing the agreement with the Mozambican government that allows it to operate the Moma mine, one of the world’s largest producers of titanium and zircon, before the December 21 deadline.
“Kenmare believes that Government representatives share its objective of concluding the renewal process before the 21 December renewal date, without the need for recourse to the dispute resolution procedures provided for in the agreement,” reads information to Kenmare investors to which Lusa had access today.
The information reports on the production and export volume of the Moma mine, on the northern coast of Mozambique, during the third quarter of the year, a period in which “Kenmare continued to collaborate constructively with the representatives of the Mozambican government in relation to the renewal of the Implementation Agreement” for its mining operation.
At issue is an agreement that, Kenmare recalls, “governs fiscal and other terms of the Industrial Free Zone, under which Kenmare conducts its mining, beneficiating and export activities”, but “does not govern or impact day-to-day mining operations”.
“On 9 October 2024 Mozambique held elections and electoral authorities have until 24 October to announce the final results,” the communique reads. The “project to upgrade Wet Concentrator Plant A in preparation for Nataka mining remains on budget”, it continues, and “twenty pontoons have arrived on site, allowing the commencement of the construction phase of the project”.
Also, a new small-scale dredge-mining and concentrating operation is expected to commence in late Q4, 2024, with a capital cost of less than $6 million.
The mine exported 302,700 tonnes of various heavy mineral ore in the third quarter, an increase of 85% compared to the same period in 2023 and 29% compared to the second quarter of this year.
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 the relatively high-value zirconium silicate mineral zircon, according to the company.
Kenmare announced in April 2023 that it plans to mine a new seam within two years in the Moma concession, signalling the mine’s longevity and profitability.
Kenmare, which is Irish-based and operates in Mozambique through subsidiaries in Mauritius, had previously announced that it paid US$30.5 million (€28.1 million) in taxes and duties to the Mozambican state in 2023.
It 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.
The company supplies customers operating in more than 15 countries and who use the heavy minerals in paints, plastics and ceramics.
$KMR has released its Q3 2024 Production Update. #Production strengthened in Q3 compared to Q2, as expected, and Kenmare is on track to achieve its 2024 guidance on all metrics. Read the full announcement here: https://t.co/782vEX4apY #mining #mineralsands #Mozambique pic.twitter.com/xpzZRiVBkw
— Kenmare Resources Plc (@KenmareRes) October 17, 2024
Source: Lusa
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