Mozambique: Mining company Kenmare Resources to reach maximum production in second half of 2009

13 May 2009

Maputo, Mozambique, 13 May – The Moma heavy minerals project, in Mozambique’s Nampula province is expected to achieve full production in the second half of this year, the director of the project, Gareth Clifton told Macauhub Tuesday in Maputo.

“We have not yet reached full production capacity at the mine,” said Clifton adding that Kenmare Resources would take 800,000 tonnes of ilmenite, zircon and rutilium per year from the mine.

According to Clifton one of the reasons for delaying maximum production capacity had been cyclone Jokwé, which affected the coastal areas of Nampula.

Kenmare Resources mines the Namalope deposit, which contains 21 million tonnes of heavy mineral concentrate (HMC) and recently identified a new deposit 10 kilometres further south that contains 140 million tonnes of HMC.

So far, despite the international financial crisis, Clifton said that “the ilmenite, zircon and rutilium market has not shown the extreme negative signs seen in many other mining markets.”

Kenmare Resources sells its products to Europe, the United States, Japan and Australia.

The Irish mining company invested over US$400 million in a project to extract heavy minerals in the coastal district of Moma, in Nampula province, in Northern Mozambique.

Kenmare already exports titanium ore, specifically ilmenite, rutilium and zircon, used in the aeronautical industry, plastics and paints industries, amongst other industrial applications.

The Moma project, which was launched at the end of 2007, operates as a Industrial Free Trade Area, which provides operators with tax incentives. (macauhub)