Reserves at Moma mine, in northern Mozambique, higher than expected

26 April 2007

Dublin, Ireland, 26 April – Irish mining company Kenmare Resources said Wednesday on its web page that reserves at the Moma mine in Mozambique were 60 percent higher than initially expected.

The new estimate, which increased heavy mineral reserves from 101 million to 163 million tons, is the result of new excavations carried out in the Nataka area.

According to the Irish company’s CEO, by the end of 2007 the Moma mines are expected to account for 6.5 percent of world titanium production.

The Moma project is currently working on an experimental basis, and is due to be launched soon.

Mining of heavy minerals involves the installation of a power transmission line between the Nampula sub-station and the heavy mineral mining location, over a stretch of around 200 kilometers, as well as a dam to provide the mineral factory with water.

The project will be financed by the European Investment Bank and by a banking syndicate which includes the African Development Bank and South Africa’s ABSA.

Geological surveys of Moma’s heavy minerals go back to 1984, when a Yugoslavian company carried out initial field work in Angoche, in the area of Sangage and Congolone.

In the 1990s, Kenmare through a joint venture with BHP Billiton identified heavy mineral deposits along the coastal regions of the districts of Moma and Mongicual.

In April 1999, after investment of US$8 million, the Australian mining company decided to withdraw from the project, leaving Kenmare to complete the pre-feasibility study. (macauhub)