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Ilmenite production continues despite Covid-19 operational impact

5th June 2020

By: Mc'Kyla Nortje

Journalist

     

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Covid-19 restrictions have caused delays to its growth project, titanium minerals and zircon producer Kenmare Resources noted in its first-quarter production update, released in April.

It operates the Moma titanium minerals mine, in northern Mozambique.

MD Michael Carvill tells Mining Weekly that the relocation of wet concentrator plant (WCP) B from Namalope to Pilivili is being affected, particularly in terms of mobilising contractors to site and fabricating equipment.

The relocation was scheduled to take place in the third quarter, with commissioning in the fourth quarter. “We are working through a series of mitigation strategies and will provide an update on the expected timing of the WCP B move as soon as possible.”

Carvill adds that other work is, however, progressing, particularly the construction of the 23 km purpose-built road from the mineral sand deposits of Namalope to Pilivili. The construction of the infrastructure terrace at Pilivili is also on track.

The four largest contracts for the project – civil engineering, pumping, electricals, and heavy lifting/transport – have been awarded and the project is now more than 40% complete.

Carvill notes that in 2018, Kenmare outlined three development projects that would contribute to increasing Moma’s ilmenite production to 1.2-million tonnes a year, in addition to increasing production of associated co-products zircon, rutile and mineral sands concentrate.

Kenmare’s development programme is targeting margin expansion, as the majority of the company’s costs are fixed, and higher production volumes should drive unit costs down.

“We believe this will enable us to deliver increased shareholder returns which, along with growth and margin expansion, forms part of our three strategic pillars.”

The first of the three projects was a 40% capacity expansion of WCP B in 2018 and it involved upgrading the plant’s capacity from 2 000 t/h to 2 400 t/h. The project was delivered on time and more than 35% under budget, costing less than $10-million.

The second project was the development WCP C, which mines and concentrates material from a high-grade area of the Namalope ore zone that is inaccessible to the company’s two other WCPs, owing to their larger sizes.

WCP C produced its first heavy mineral concentrate in February this year and is continuing to ramp up. The project is expected to be completed within its $45-million budget.

Carvill notes that, once Kenmare is producing 1.2-million tonnes a year of ilmenite, its production will account for 10% of global supply, compared with the 7% it currently produces.

Although the Moma mine continues to produce and ship its products, despite the operational impact of the Covid-19 pandemic, Kenmare suspended its production guidance in early April, he adds.

“We are working closely with our contractors and local authorities to mitigate the impacts on the mine, but at this time the outlook is unclear.”

He points out that, to date, there are no known cases of Covid-19 at Moma or in the local villages, but access to the mine has, nevertheless, been significantly restricted to prevent the spread of the virus.

Employees living outside the local mine area are no longer allowed to travel to site and physical distancing measures have been implemented, including staggering shifts to allow for fewer people using transportation and a restricted canteen service, including a ‘takeaway’ facility.

He also adds that new health protocols have also been introduced and the company has invested in additional medical equipment to enable the company to stabilise any person who does become ill with Covid-19.

Kenmare has also donated 1 000 hand sanitation kits, digital thermometers, masks and posters to local health facilities and local communities. The company has also ordered various types of ventilation equipment that will be donated to medical facilities in Nampula, the closest large town to the mine, says Carvill.

Kenmare’s Influence in Mozambique

Mozambique is a mining-friendly jurisdiction with a growing natural resources industry, says Carvill, adding that several majors have operations in-country, in addition to multinational oil and gas producers.

Kenmare has fostered a “strong relationship” with the Mozambique government, local authorities and its host communities during its 30-year history in the country.

“Government has always upheld the terms of its licences and other agreements, and we value their partnership highly.”

He adds that Kenmare is proud to contribute to the development of Mozambique and, at the end of 2019, it directly employed more than 1 420 people, with 96% of that workforce being Mozambican.

One innovation to assist the community is the Kenmare Graduate Development Programme. Last year, 32 Mozambicans participated in the programme and graduates now occupy positions such as plant supervisors, metallurgists and geologists.

Kenmare is also committed to being a positive catalyst for socioeconomic change in its host communities.

Edited by Nadine James
Features Deputy Editor

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