Kenmare approves upgrade of plant to access 20-year Nataka resource

Kenmare's Moma mine

KENMARE Resources has approved the upgrade of a wet concentrator plant and tailings storage facility at its Moma titanium minerals mine in Mozambique.

The WCP A upgrade, the storage facility, as well as installing two new dredges carries a capital cost of $225m and will enable Kenmare to access the Nataka resource at Moma which will extend mining for more than 20 years, according to an update on Thursday.

There is also a requirement for Kenmare to sign off on additional infrastructure spend of between $91m and $106m. A definitive feasibility study for these elements is expected to be completed in the second quarter of next year, it said in the update.

Kenmare is also considering the upgrade of its WCP B at Moma. A study in this regard is due to completion in the second quarter.

However, an investment decision on WCP B has been deferred whilst the company focuses on WCP A. Once approved this upgrade would take about 15 months to complete and increase the capacity of the WCP B by about 42%, Kenmare said.

A debt refinancing process to support its capital projects, which was started in September, would be completed in the first quarter of next year. A $40m revolving credit facility with a December 11 maturity date has been extended a year to December 2024.

Total dividends in respect of 2023 are expected to be approximately $50m, said Kenmare. “In subsequent years revenues and dividends will be partially subject to commodity prices and may be lower than 2023, although the company would expect to use the full range of its 20-40% Profit After Tax dividend policy,” Kenmare said.