The modernisation and relocation of titanium and zircon producer Kenmare Resources’ WCP A wet concentrator plant at its Moma minerals mine aims to ensure production and long-term sustainability, Mining Weekly reported last Friday, June 7.
According to the paper, Kenmare is planning a significant investment of up to 21.5 billion meticals (341 million dollars) from 2024 to the end of 2027 to make the project possible.
The mining company operates three mining plants in Moma, the largest of which is WCP A, which is scheduled for an upgrade and transfer to the Nataka ore zone, which is home to more than 70% of Moma’s nine billion tonnes of mineral resources.
The company explains that the transition is scheduled for the end of 2025 and is expected to ensure production for decades to come. The transition from WCP A to the Nataka mine is expected to give Kenmare access to Moma’s mineral resources, which equates to a mine life of more than 100 years.
In 2023, Kenmare produced almost one million tonnes of ilmenite. The modernisation and transition of WCP A is expected to contribute to an increase in production to 1.2 million tonnes per year after modernisation. ‘The project is designed to maintain the company’s position in the top quartile of the industry’s revenue/cost curve, ensuring robust cash flow throughout commodity price cycles,’ said Michael Carvill, Kenmare’s managing director, noting that the investment is in line with the mining company’s strategic objectives and its commitment to community development through its non-profit organisation Kenmare Moma Development Association (KMAD).
The source said that the capital cost for the upgrade and transfer of WCP A to Nataka includes costs for additional infrastructure, with a definitive feasibility study expected before the end of the second quarter currently underway.
‘This significant investment is yet another demonstration of our confidence in our team and our assets in Mozambique,’ the official pointed out, adding that the company has already invested around 88.4 billion meticals (1.4 billion dollars) in Moma.
One of Kenmare’s mines
Despite the remote location of the Moma mine, Kenmare’s managing director clarified that the mining company’s team is well prepared for the project.
The company successfully relocated another mining plant in 2020 and has developed a robust support infrastructure, including a power line connected to the renewable hydroelectric power from the Cahora Bassa dam, a dedicated port facility and a rotating uninterruptible power supply, related to improving the stability of the power for the mineral separation plant.
Michael Carvill highlighted the country’s stable legislative environment, as ‘the government has always upheld our licences and agreements, and we greatly value this partnership’.
Kenmare’s products account for 7 per cent of Mozambique’s exports and it employs more than 1,700 people, 97 per cent of whom are Mozambican. The mining company has also been named the most transparent company in the country for three consecutive years by the Centre for Public Integrity’s Extractive Industry Transparency Index.
Environmental Management
Sustainability is fundamental to Kenmare’s operations, with a long-term commitment to responsible environmental practices. The transition to Nataka allows the company’s progressive land rehabilitation programme to continue, while also enabling the timely return of land to communities.
Kenmare planted 204,000 trees, including 151,000 indigenous saplings (new plants, still developing), in 2023, and is continuing with other reforestation efforts. ‘We don’t use toxic chemicals in our operations and 90 per cent of our electricity comes from renewable hydroelectric power,’ said Michael Carvill.
Michael Carvil
Mining Weekly explains that Kenmare’s presence in Mozambique for more than 30 years has also fostered strong relationships with local stakeholders and communities and, although there are security concerns, its operations are a long way from insurgency-prone areas.
‘We haven’t had any problems with insurgencies to date and we continue to greatly value the support of our partners,’ he confirmed.
Kenmare plans to adapt to evolving economic, social and environmental challenges by focussing on local employment, increasing gender diversity and aiming for net zero emissions by 2040. In 2023, the company reduced emissions by 14 per cent compared to the previous year, mainly through renewable energy initiatives.
