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Kenmare Spends Over $73M Annually on Domestic Purchases to Boost SMEs

Kenmare Spends Over $73M Annually on Domestic Purchases to Boost SMEs

Kenmare Resources, the company operating the Moma mine in Nampula province, northern Mozambique, revealed that it spends over $73 million (4.6 billion meticais) annually on domestic purchases, positioning itself as a key driver of Micro, Small, and Medium Enterprises (MSMEs) development.

“Strengthening economic linkages between Kenmare and MSMEs gained new momentum with the Conecta Negócio Project, implemented by the Ministry of Finance with World Bank funding. Each year, the company allocates about 40% of its procurement budget to national suppliers, reinforcing its role as a strategic partner of the private sector,” said Isefa Sitoe, Kenmare’s Procurement Manager.

Cited by the Mozambican News Agency, Sitoe explained that the company follows a clear geographical prioritization policy. “We always start by seeking suppliers in Topuito, then in Nampula, and only afterwards in the rest of the country. We only look abroad if local capacity is unavailable,” he noted.

Currently, Kenmare works with 213 Mozambican suppliers. “Services make up the largest share of local supplies, including maintenance, logistics, fumigation, laundry, and metal structures. Our approach has a direct social impact, requiring that 80% to 90% of subcontracted labor be Mozambican, ensuring employment promotion and local development.”

In September, Kenmare announced the start of works to connect two new dredges and the feed preparation unit to the Wet Concentration Plant A (CCH A) as part of a modernization project at the Moma mine. The company is upgrading its largest mining plant at the titanium minerals mine in preparation for the transition to the Nataka ore zone—the largest ore zone in Moma’s portfolio, representing about 70% of its mineral resources.

According to the company, the estimated capital cost for the CCH A modernization and the transition to Nataka remains $341 million, including the construction of a new tailings facility and infrastructure in Nataka.

By the end of 2025, CCH A is expected to operate at a capacity of 3,500 tons per hour. The unit should complete the Namalope mining area in the second quarter of 2026 and begin the transition to Nataka at the end of the same quarter, a process expected to take about 18 months.

Source: Diário Económico

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