Maputo, Jan. 20, 2025 (Lusa) - Mining company Kenmare announced on Monday that exports from the Moma mine in northern Mozambique, one of the world's largest producers of titanium and zircon, grew by 4% in 2024 to more than one million tonnes.
According to information provided to the market by Kenmare, which operates the mine, shipments of various finished minerals totalling 1,088,600 tonnes (heavy sands, zircon, ilmenite and rutile) were made last year, especially in the second half.
"Shipments are expected to exceed production in 2025, supported by the high stock levels of finished products," according to information from the mining company, which operates the mine on the coast of Nampula province in northern Mozambique.
"Demand for all types of Kenmare products remained robust in 2024 and sales are expected to continue to exceed production in 2025," Kenmare, a company of Irish origin that operates in Mozambique through subsidiaries in Mauritius, said.
The company is one of the world's largest producers of mineral sands, listed on the London and Dublin stock exchanges, and production in Mozambique represents approximately 7% of global titanium raw materials, with customers in more than 15 countries who use its heavy minerals in paints, plastics and ceramics.
"Kenmare delivered a strong result in 2024, exceeding the mid-point of our production guidance for ilmenite and the upper limit of the guidance ranges for all other products. We also surpassed the two million hours worked mark," Kenmare's CEO, Tom Hickey, said in the document.
In 2024, Kenmare paid out around $48 million (€46.5 million) in dividends and invested $140 million (€135.7 million).
The Moma mine contains reserves of heavy minerals, including titanium, ilmenite, and rutile. These minerals are used as raw materials to produce titanium dioxide pigment and zircon, a relatively high-value zirconium silicate mineral.
The mining company announced in April 2023 that it planned to explore a new lode on the Moma concession within two years, signalling the mine's longevity and profitability.
Kenmare announced last month that it would not be possible to conclude the renewal of the Moma mine by 21 December but would maintain the operation until the agreement with the government was concluded.
"We are pleased that the government has confirmed our ability to continue operating under the existing terms during this interim period and that the process can be concluded in an orderly manner," the mining company's CEO said earlier.
At issue is the renewal of the Moma Exploration Implementation Agreement, under which Kenmare conducts its mineral processing and export activities. The agreement expired on 21 December, and negotiations with Mozambique's government for a new understanding have not yet concluded.
The company had previously assumed the renewal would be delayed due to the country's electoral process.
Meanwhile, Mozambique's Agency for the Promotion of Investment and Exports "indicated that the company's existing rights and benefits remain in full force and effect pending the conclusion of the process", meaning that "Kenmare can continue to process minerals and export end products in the same way as it currently does".
PVJ/ADB // ADB.
Lusa
