Modern Mining June 2019

MINING News

The Moma TitaniumMinerals Mine showing WCP B (photo: Kenmare).

Kenmare approves project to move Wet Concentrator Plant eral reserves of 220 Mt averaging 4,4 % Total Heavy Mineral (THM). The life of mine average grade mined by WCP B at Pilivili is expected to be 4,6 % THM; in the first four years of production the average grade mined is expected to be 5,3 % THM.

Kenmare Resources, which has a pri- mary listing on the LSE and a secondary listing on the Irish Stock Exchange, has announced the results of the Definitive Feasibility Study (DFS) for the relocation of its Wet Concentrator Plant (WCP) B to the Pilivili ore zone at its Moma Titanium Minerals Mine in northern Mozambique. With the DFS confirming the tech- nical and economic feasibility of relocating WCP B to Pilivili, the project has been approved by Kenmare’s board. “The results of theDFS confirmour plans for relocating WCP B to Pilivili. Kenmare is on track to deliver a 20 % increase in production at Moma on a sustainable basis from 2021 and the move of WCP B to Pilivili will be the final step in achiev- ing this goal,” comments Michael Carvill, Kenmare’s MD. “Earlier this month (June), we received the first of two environmental permits required for the relocation and we expect to receive the second in Q3-2019, with the construction of the purpose-built road commencing immediately thereafter. I look forward to providing further updates on our progress with this growth project during the coming 18 months.” Kenmare previously announced three development projects that together have the objective of increasing production to

1,2 Mt/a of ilmenite (plus co-products) on a sustainable basis from 2021. The first development project, the 20 % capacity expansion of WCP B, was commissioned by the end of 2018, on time and at a cost of more than 25 % below budget. The second development project, the con- struction of WCP C, is well underway, with commissioning scheduled for Q4-2019. The third project is the relocation of WCP B to Pilivili, which is planned to be completed by the end of 2020. This final project targets increased total production by accessing higher grade ore in the Pilivili ore zone. WCP B began mining the Namalope ore zone in 2013 and is expected to complete the current mine path in Q3-2020. All ore zones within the Moma portfolio were considered for the relocation of WCP B but Pilivili was selected due to the favourable combination of higher grades, strong co- product credits and free flowing sand with low slimes, enabling ease of mining and processing. Additionally, Pilivili is located 23 km from Namalope and the existing Mineral Separation Plant (MSP), allow- ing for ease of heavy mineral concentrate (HMC) transportation by pipeline. The Pilivili ore zone has the highest grades within Moma’s portfolio, with min-

Due to these higher grades, it is antici- pated that production from Pilivili will increase overall HMC production by an average of 130 000 t/a, contributing to a total of 1,2 Mt/a of ilmenite production (plus co-products) from 2021. Additionally, Pilivili’s mineral reserves have higher zir- con and rutile co-product credits than Namalope (with 0,25 % zircon and 0,08 % rutile in ore), which should contribute to lower cash operating costs per tonne of ilmenite. As a result of the relocation, Kenmare expects production from WCP B to be suspended for up to 12 weeks, from the completion of mining at Namalope to the start of commissioning at Pilivili. Additional mining areas have been identi- fied for WCP B at Namalope to ensure that production is maintained in the event of delays to the project execution schedule. Pilivili has a mine life of eight years, after which WCP B will mine its way to the adjacent ore zones of Mualadi and Nataka. Consequently, Kenmare believes that

4  MODERN MINING  June 2019