LSE-listed Kenmare Resources’ board has approved the $106-million relocation of wet concentrator plant (WCP) B to the Pilivili ore zone at Moma titanium minerals mine, in northern Mozambique.
This follows the completion of a definitive feasibility study, which confirmed the technical and economic feasibility of relocating WCP B to Pilivili when the existing mining path at Namalope is completed in the third quarter of 2020.
The move of WCP B is the last of three internal growth projects required to increase production to 1.2-million tonnes a year of ilmenite, as well as zircon and rutile as by-products.
Kenmare expects to fund the capital cost of the relocation from its balance sheet and internally generated cash flow.
The relocation and re-establishment is expected to start in the third quarter of 2020 and will be completed within 12 weeks, with commissioning anticipated in the fourth quarter of 2020.
Kenmare MD Michael Carvill says the company is on track to deliver a 20% increase in production at Moma on a sustainable basis from 2021 and the move of WCP B to Pilivili will be the final step in achieving this goal.
“Earlier this month, we received the first of two environmental permits required for the relocation and we expect to receive the second in the third quarter, with the construction of the purpose-built road starting immediately thereafter,” he points out.
Pilivili is the highest-grade ore zone in Moma’s portfolio and is expected to contribute an additional 130 000 t/y of heavy mineral concentrate production.