Titanium reserves in Moma, Mozambique are 40 pct bigger than estimated

29 March 2006

Maputo, Mozambique, 29 March – The titanium reserves in the Moma mining complex, in Mozambique’s Nampula province, are 40 percent higher than had been estimated, the concession-holding company, Kenmare Resources said.

According to a statement issued Tuesday by the Irish company, total estimated resources have risen to 101 million metric tons, when they were initially forecast at 72 million tons.

The principal new finds, the statement says, were made in the Nataca exploration, where reserves are 2.5 more than predicted.

Tony McCluskey, the company’s financial director, said that due to the exploration work currently underway, “there is the possibility that this estimate will be newly increased.”

Kenmare said that the complex had been 81 percent concluded and that it should be operational by the end of the year.

The production capacity of the Moma mine should account for around 8 percent of the world’s consumption of titanium ore, which is used as a pigment for paint, paper and plastics.

It is also estimated that it will contribute 2.4 percent to the growth of the Mozambican economy.

Following the announcement Kenmare shares rose 16 percent on the Dublin stock exchange, taking its market capitalization to 471.6 million euros. (macauhub)