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Wet concentrator plant B relocation project, Mozambique – update

2nd October 2020

By: Sheila Barradas

Creamer Media Research Coordinator & Senior Deputy Editor

     

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Name of the Project
Wet concentrator plant (WCP) B relocation project.

Location
The WCP B will be relocated to the Pilivili ore zone at the Moma titanium minerals mine, in northern Mozambique.

Project Owner/s
Kenmare Resources.

Project Description
Kenmare previously announced three development projects to increase production to 1.2-million tonnes a year of ilmenite (plus co-products of zircon and rutile) from 2021.

A definitive feasibility study has confirmed the technical and economic feasibility of relocating WCP B, 23 km from its previous mining area at Namalope, to a new high-grade ore zone called Pilivili, following the completion of the existing mining path at Namalope in the third quarter of 2020.

Pilivili is the highest-grade ore zone in Moma’s portfolio and is expected to contribute an additional 130 000 t/y of heavy minerals concentrate production.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
Not stated.

Capital Expenditure
The total capital cost estimate for the relocation is $106-million, including $15-million in contingency.

Planned Start/End Date
The relocation and re-establishment of WCP B is expected to start in the third quarter of 2020, with commissioning expected in the fourth quarter of 2020.

Latest Developments
Kenmare Resources has safely relocated the WCP B to Pilivili at its Moma titanium minerals mine.

Kenmare previously announced three development projects that aim to increase ilmenite production to 1.2-million tonnes a year (plus co-products) on a sustainable basis from 2021.

The move of WCP B to the high-grade Pilivili ore zone is the last of the three projects.

This increased production is expected to significantly lower cash operating costs to between $125/t and $135/t (in 2020 real terms).

Consequently, from 2021, the group expects to be in the first quartile of the industry revenue-to-cost curve, supporting stronger free cash flow generation and providing for increased shareholder returns.

The move was undertaken in two stages, with the dredge moved first, followed by WCP B. They were transported along a 66-m-wide, purpose-built road using platform vehicles – called self-propelled modular transporters (SPMTs) – by specialist heavy lifting and transport contractor Mammoet.

The other key contractors for the project are Hatch, Teichmann and Binvic.

This is the only move of this type expected to be required during WCP B’s economic life.

WCP B and its dredge are now positioned safely on plinths in Pilivili and the next stage is to float them across the Mualadi river and into the starter pond.

The establishment of associated infrastructure is continuing and heavy minerals concentrate production from WCP B is expected to begin in the fourth quarter.

WCP B weighs about 7 100 t, including the ballast, and is 24 m high, 80 m long and 60 m wide. It is the heaviest piece of mining equipment to be moved in Africa to date.

With 290 axles required to lift and transport WCP B, the move also represents the most SPMT axles used in Africa to date and one of the largest moves of a single piece of equipment in the world.

The move was particularly unusual, owing to the combination of the weight of the load and the length of the distance travelled, Kenmare has said.

“Moving the plant in one piece – an object weighing the equivalent of 550 double-decker buses, taller than a seven-storey building and wider than a football pitch – is a huge achievement for our company.

"This type of relocation is rare in the mining industry, but it was the correct choice for Kenmare given the economic benefits and lower risk profile it provided, compared with the alternatives we considered.

Key Contract, Suppliers and Consultants
Mammoet (relocation of WCP B).

Contact Details for Project Information
Kenmare Resources, tel +353 1 6710411 or email info@kenmareresources.com.

 

Edited by Creamer Media Reporter

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