October 11, 2008

Titanium mine put into production in Mozambique

Xinhua reported that a titanium ore dredge mine, Mozambique's largest mining project to date is under way at Topuito on the coast of the Northern Province Nampula. Mr Armando Guebuza president of Mozambique inaugurated the mine at Topuito of the Northern Province Nampula, which can supply 6% of the total world demand for titanium feedstock.

Since 1987, Kenmare has spent about USD 500 million on heavy sands prospection, and on building the Topuito infrastructures. Of this, USD 275 million is in the form of bank loans and the rest is equity.

The exports have not yet begun, since the barge, built in Singapore, has not reached Topuito. The first confirmed export is 25,000 tonnes of ilmenite for a company in Slovenia.

Mr Michael Cargill MD of Kenmare said that major chemical in Europe, America, Japan and China are interested in obtaining titanium ores from Topuito. Mr Cargill is confident of paying off the loans on schedule, and believes that the mine would make a return on the investment in maybe ten years.