Name and location
Moma titanium minerals project, Mozambique.

Project description
The mine will be built on the coast of the northern province of Nampula, where heavy sands contain world-class deposits of titanium minerals.

The project, which is based on proved technology, will consist of two dredgers, a dredge pond, a concentrator plant, a minerals-separation plant (MSP), an access road, an export jetty with product storage and a loading facility, electrical transmission and standby generation facilities, an accommodation village and other related infrastructure.

Following a new reserve discovery at Nantaka, close to the mine, Kenmare has pegged the mine life of the project at 120 years, far higher than a previous estimate of 20 years.

The total resource under licence to Kenmare has increased by more than 60%, from 101-million tons to 163-million tons of contained ilmenite, with associated increases in coproducts to 12,4-million tons of zircon, and 3,6-million tons of rutile.

When fully commissioned, the project will produce 800 000 t/y of ilmenite, 21 000 t/y of rutile, and 56 000 t/y of zircon.

Value
The project will cost over $450-million. Kenmare has signed loan agreements totalling $269-million with a group of banks including the African Development Bank, Absa, the Euro-pean Investment Bank, FMO and KfW. The remainder of the investment is in the form of equity raised by Kenmare.

Duration
Mining started at the Moma project in April 2007.

Breakdown of main contracts
A 500-m-long jetty will be built from which a 4 000-t capacity self-unloading barge will transport saleable product to offshore seagoing bulk vessels.

The barge will be fed by a 2,5-km overland conveyor from the dry MSP.
The deposit will be mined by two 2 500-t/h floating dredges in a pond. The ilmenite-, rutile- and zircon-rich heavy concentrate will be separated from the lighter sand in the floating wet-minerals concentrator plant (WCP). The WCP will be constructed on top of floating pontoons and comprise a steel structure housing the spiral assemblages. The MSP will be erected approximately two kilometres from the concentrator plant and the wet concentrate will be pumped to the MSP where it will be stockpiled.

The wet concentrate will be fed into the plant by front-end loaders.

Client
Kenmare Resources.

Latest developments
Kenmare Resources has issued a taking-over certificate for Phase 2 of the Moma titanium minerals mine to the contractor building the project. Phase 2 includes the MSP, the product warehouse, minerals export facilities, and all related infrastructure. The MSP is now under the control of Kenmare, and is now operational, and producing final products, which are being stored for shipment.

Mining and concentration operations started at Moma in late-April 2007. Since then, a heavy minerals concentrate stockpile has been built up, ready for conversion into final products in the MSP.

The Bronagh J, a 4 000-t self-propelled transfer barge, is making final preparations to sail from Singapore to Moma. This barge will transfer products from Kenmare's jetty and self-discharge these minerals products into customer vessels moored offshore. The take-over of the Bronagh J will complete the handover of the core elements of the project.

Participants
Moma Development Association, African Development Bank, ECIC (the South African Export Credit Agency) and Absa (the South African commercial bank, which proposes to lead the bank's funding with the ECIC guarantee), the European Investment Bank, FMO and KfW (the German development-financing institution).

BHP Billiton, CH Warman Pump Group (Alrode) (refurbishment of 41 pumps), Netcare (medical facility at the site), charter company Norse-Air is running one flight a week to and from Moma, SA Fence & Gate (fencing), Comarco (barging and material handling/offloading), CMC Mozambique (civil works), Group 5 (jetty construction), Kentz (mechanical, steel and piping contractor), Multiplex/Bateman JV (main engineering, procurement and construction contractor), Power Line Africa (overhead transmission line from Nampula to the project), Petromoc (fuel supply), Rohlig (logistics and shipping), Rumdel Construction(earthworks and Mavele dam construction), Securicor (security), Siemens (powerline and internal distribution system design and construction), and Spirit of Africa (accommodation village and mine buildings).

Construction materials
Not stated.

On budget and on time?
The construction is within budget and on schedule.

Contact details for project information
Kenmare Resources, Gareth Clifton,
tel +2581 499701.