africa construction environment Government Infrastructure Mining Mozambique pipeline road

Mozambique: Kenmare gets green light to move plant

Irish mining group Kenmare Resources has received the final environmental approval for the purpose-built road to Pilivili by the Ministry of Land, Environment and Rural Development in Mozambique.

As part of its growth strategy to increase production to 1.2 million tonnes of ilmenite a year from 2021, Kenmare is relocating its Wet Concentrator Plant (“WCP”) B to the high grade Pilivili ore zone in the second half of next year.

Current levels of production are around of 900,000 – 1 million tonnes per annum.

Michael Carvill, managing director of Kenmare Resources, said: “We are on track to relocate WCP B in Quarter 3 2020 and begin commissioning in Quarter 4 2020. Pilivili is the highest grade ore zone in Kenmare’s portfolio and from 2021 we expect to have increased production and become a first quartile margin producer.”

The environmental approval for the road, which includes the power line, heavy mineral concentrate pipeline and related infrastructure, was the second of two environmental approvals required for the relocation of WCP B.

The first approval was received in May this year.

The project delivery timeline for the relocation of WCP B remains on track.

Job Langbroek, analyst at Davy Stockbrokers, said the news “is positive for the stock and maintains the group’s very solid performance in terms of delivery of capital projects.”

Source: Business Irish

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