Name of the Project
Wet concentrator plant (WCP) B relocation project.

Location
The WCP B will be relocated to the Pilivili ore zone at the Moma titanium minerals mine, in northern Mozambique.

Project Owner/s
Kenmare Resources.

Project Description
Kenmare previously announced three development projects to increase production to 1.2-million tonnes a year of ilmenite (plus co-products of zircon and rutile) from 2021.

A definitive feasibility study has confirmed the technical and economic feasibility of relocating WCP B, 23 km from its previous mining area at Namalope, to a new high-grade ore zone called Pilivili, following the completion of the existing mining path at Namalope in the third quarter of 2020.

Pilivili is the highest-grade ore zone in Moma’s portfolio and is expected to contribute an additional 130 000 t/y of heavy mineral concentrate production.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
Not stated.

Capital Expenditure
The total capital cost estimate for the relocation is $106-million, including $15-million in contingency.

Planned Start/End Date
The relocation and re-establishment of WCP B is expected to start in the third quarter of 2020, with commissioning expected in the fourth quarter of 2020.

Latest Developments
The relocation of the WCP B is under way.

Kenmare previously announced three development projects that aim to increase yearly ilmenite production to 1.2-million tonnes (plus co-products) on a sustainable basis from 2021, with the move of WCP B from Namalope to the high-grade Pilivili ore zone being the final project. Mining at Namalope was completed in late August 2020.

The increased production is expected to significantly lower cash operating costs to between $125/t and $135/t.

Consequently, from 2021, the group expects to be positioned in the first quartile of the industry revenue-to-cost (or margin) curve, supporting stronger free cash flow generation and providing for increased shareholder returns.

The WCP B and its associated dredge have now been successfully placed on the concrete plinths in the relocation pond and the pond has been dewatered.

The dredge and the WCP B are to be moved in two stages. The first stage involves the movement of the dredge.

Once the dredge has been relocated to Pilivili, the self-propelled modular transporters will return to Namalope to transport the WCP B along the same route. The physical relocation is expected to be completed in the next few weeks.

"Once WCP B and the dredge reach Pilivili, we will begin the process of re-establishing them in their new location . . . we expect mining to commence at Pilivili during quarter four 2020,” MD Michael Carvil has said.

Key Contract, Suppliers and Consultants
Mammoet (relocation of WCP B relocation).

Contact Details for Project Information
Kenmare Resources, tel +353 1 6710411 or email info@kenmareresources.com.