Name and Location
Moma titanium mine expansion, Mozambique.

Client
Kenmare Resources.

Project Description
The Moma mine produces titanium minerals, ilmenite and rutile, used as feedstocks to produce titanium dioxide pigment and the relatively high-value zirconium silicate mineral, zircon.

The expansion project involved increasing the Moma mine's production by about 50% to about 1.2-million tons a year of ilmenite and associated products.

The main elements of the expansion included:
• an upgrade of the capacity of the existing two dredges and the wet concentrator plant (WCP) to increase spiral feed capacity from 3 000 t/h to 3 500 t/h;
• the installation of a second WCP with a spiral feed capacity of 2 000 t/h in a separate dredge pond, utilising a new third dredge on the Namalope reserve;
• the addition of a wet high intensity magnetic separation circuit at the front of the ilmenite circuit of the mineral separation plant (MSP);
• modifications to the existing MSP, including an auxiliary 80 t/h ilmenite circuit, to increase throughput capacity from 135 t/h to 220 t/h; and
• an upgrade of the product storage facilities to increase capacity of final products from 140 000 t to 220 000 t.

Value
$350-million.

Duration
The expansion of the Moma mine was completed in 2013. The mine is expected to produce an estimated 8% of global titanium minerals feedstock supply in 2014.

Latest Developments
Kenmare has amended the terms of the project financing for its Moma mine and negotiated an extension of the repayment date of its $20-million loan from Absa, allowing it to conserve cash and have greater flexibility during the current period of low commodity prices, according to Kenmare MD Michael Carvill.

The terms of the Moma project financing have been amended to remove the requirement to make scheduled principal payments of senior debt, interest and subordinated debt in August 2014, February 2015 and August 2015.

Kenmare will now pay these amounts only to the extent that the Kenmare group cash balance exceeds $80-million, in accordance with a cash sweep mechanism.

Simultaneously, Kenmare has also secured an extension to Absa’s corporate loan, which will now mature on March 31, 2016, as opposed to March 31, 2015.

The terms of the extension provide that the loan is repayable upon a change of control of Kenmare.

Key Contracts and Suppliers
E+PC (engineering, procurement and construction management contract).

On Budget and on Time?
Not stated.

Contact Details for Project Information
Kenmare Resources, tel +353 1 671 0411 or +353 1 671 0810, fax +258 21 499731 or email info@kenmareresources.com.
Brunswick South Africa, on behalf of the Aveng Group, tel +27 11 502 7300 or fax +27 11 268 5747.
E+PC, tel +27 10 205 1000 or fax +27 87 807 0143.