Modern Mining December 2017

MINING News

as proof-of-concept for the future devel- opment model at Mutamba. Savannah is currently targeting first production in 2020 with an estimated average annual production of 456 000 tonnes of ilmenite and 118 000 tonnes of non-magnetic con- centrate over a 30-year life of mine. The Mutamba Consortium was formed late last year and partners Savannah and its wholly owned subsidiary, AME East Africa, with Rio Tinto. The consor- tium agreement combines Savannah’s Jangamo project with Rio Tinto’s adja- cent Mutamba project, which includes three deposit areas – Jangamo, Dongane and Ravene – and the Chilubane deposit, which is located 180 km to the south-west of Mutamba. Savannah is the operator of the proj- ect and can earn up to a 51 % interest in the combined project as it moves towards production through scoping, pre-feasibility and feasibility studies. The Consortium Agreement includes an offtake agreement on commercial terms for the sale of 100 % of production to Rio Tinto (or an affiliate). The project is located in the Gaza and Inhambane provinces of Mozambique in a world-class heavy minerals sands (HMS) region close to established infrastructure, approximately 450 km north-east of the capital city of Maputo. The global mineral resource estimate for the Mutamba project (Jangamo, Dongane and Ravene) currently stands at 4,4 Bt at 3,9 % total heavy minerals (THM) comprising both indicated and inferred category material and containing ilmenite, rutile and zircon This includes a high-grade portion of 92 Mt at 6,2 % THM, which was defined at Ravene.  Kibo’s board believes that Mabesekwa presents a highly synergistic opportu- nity, being perfectly placed to address the chronic power shortages in Southern Africa. Furthermore, the project has many similarities to Kibo’s flagship asset, the MCPP, where a 300 MW‘mine mouth’power station is anticipated to be in production in 36 months from the date of achieving financial close. It is envisaged that with Kibo developing two similar power projects, considerable benefits will be realised including econo- mies of scale both in equipment, execution and project finance. 

The Mutamba pilot plant (photo: Savannah Resources).

Mutamba pilot plant officially opened

Mutamba, which our fully owned subsid- iary AME is conducting on behalf of the Mutamba Consortium. The pilot plant will allow us to process samples and conduct tests on the extraction of minerals from the deposits. While things are still at a very early stage, a pilot plant is an important part of any project study and we look for- ward to the work ahead.” According to Archer, the overall market setting for TiO 2 feedstocks continues to improve and new supply of TiO 2 feedstocks will be required to meet forecast demand and to ease anticipated market tightness. The test work to be undertaken will act listed on the Botswana Stock Exchange. The transaction covers a 300 Mt subset of the current in situ 777 Mt coal mineral resource (SAMREC) defined by Shumba at Mabesekwa. The project is located approximately 40 km east of the village of Tonata and approximately 50 km south-east of Francis­ town, Botswana’s second largest city. Kibo envisages the project as a coal-based integrated ‘mine mouth’ power plant, with potential for incorporation of a solar component.

AIM-listed Savannah Resources has announced that construction of the 20 t/h pilot plant for its bulk metallurgical test work programme at the Mutamba mineral sands project in Mozambique has been completed. The plant was officially opened on 7 December by Daniel Chapo, Governor of Inhambane Province. Savannah’s CEO, David Archer, says the company has been delighted to see the continuing strong support for the project both from the Governor and all levels of government and local communities. “The commissioning of the pilot plant is an important step forward for our studies on

Kibo Mining to acquire interest in Mabesekwa KiboMining, listed on London’s AIM and the AltX in Johannesburg, has announced the agreed acquisition of an 85 % interest in the Mabesekwa coal independent power proj- ect in Botswana in an all share transaction. This is a major part of Kibo’s new strategy focused on re-positioning itself as a strate- gic regional electricity supplier on the back of its flagship Mbeya Coal to Power Project (MCPP) in Tanzania.

Kibo’s interest in Mabesekwa is to be acquired from Sechaba Natural Resources, a subsidiary of Shumba Energy, a company

10  MODERN MINING  December 2017