Kenmare Resources, the developers of Moma Titanium Minerals Mine has given further approvals for the upgrade of Wet Concentrator Plant (WCP) A and transition to the Nataka ore zone.
According to the global producers of titanium minerals and zircon, the project is expected to deliver consistent production volumes for decades to come and maintain Kenmare’s low operating costs, targeting the retention of a first quartile industry position.
“Production expectations for 2023 remain in line with the revised guidance provided in July. Guidance for 2024 will be provided with the Q4 2023 update in mid-January, with production expected to be broadly in line with the 2023 revised guidance range,” said plc Michael Carvill, Kenmare Managing Director:
Carvill said ilmenite pricing in 2024 is expected to be lower than 2023.
“However, Kenmare expects improved demand to emerge in 2024, as the year progresses and believes the medium-term and long-term fundamentals for all products remain strong.”
Meanwhile the Board has approved for execution an upgrade to WCP A and development of a Tailings Storage Facility (TSF), enabling the transition of WCP A to its new mining zone in Nataka
“As previously announced, a contract to construct two higher-capacity dredges was awarded in September and is now in execution phase.
The remaining element of the project, relating to infrastructure, is currently in the Definitive Feasibility Study (DFS) phase, scheduled for completion in Q2 2024,” said the company.
The capital expenditure to the end of 2026 on the upgrade of WCP A and ancillary infrastructure is now expected to be between $316-331 million and the final investment decision (FID) for an upgrade of WCP B has been deferred while the WCP A investment is prioritised
“Refinancing of debt facilities is expected to complete in Q1 2024, with the existing $40 million revolving credit facility already renewed to end 2024.”
Statistics indicate that WCP A will complete mining at Namalope in late 2025, and commence its transition to the Nataka ore zone, where it is expected to operate for the remainder of its economic life, exceeding 20 years.
“The principal components of the project include the replacement of WCP A’s two existing dredges with higher-capacity dredges, the addition of a desliming circuit, and the construction of a TSF. The DFS for these elements have now been completed and execution has been approved by the Board. The DFS for the supporting infrastructure is underway and is expected to be completed in Q2 2024.”
By: Loyce Zemeyi
