Long-term planning for sustainable mining

November 7, 2024

Gareth Clifton, Mozambique country manager for Kenmare Resources, talks to The Energy Year about unlocking the value of Mozambique’s mineral resources and transitioning production to the Nataka deposit from late 2025. Kenmare is an Irish mining company that operates the Moma Titanium Minerals Mine in Mozambique.

The Moma titanium mine is estimated to have sufficient resources for more than 100 years of production. How does Kenmare plan to manage this asset?
We have a comprehensive plan for the Moma mine outlining our operations for the next two decades, which we update continuously to ensure its effectiveness. Our largest mining plant, the Wet Concentrator Plant (WCP) A, is coming to the end of its current mine path and will move to the Nataka ore zone in late 2025, which has enough resources for the next 60-70 years and will secure production for decades to come.

What do you expect will be the biggest challenges in your relocation to Nataka?
In 2020, we relocated one of our other mining plants, WCP B, from Namalope to Pililvili by transporting the entire unit via a specially constructed road. The transition of WCP A to Nataka in late 2025 will require a strategy by which the plant mines its way through a transition channel.
The primary challenge we anticipate is the presence of clay particles in the ore, which makes separating the valuable minerals from the sand more difficult. To address this, we’re investing in a desliming circuit, which will introduce a pre-processing step to remove clay before the concentration process begins.
The repositioning will also require significant infrastructure upgrades. Power lines will have to be erected at the new location and we’re acquiring new, more powerful dredges specifically designed to handle the more challenging mining conditions we expect. We are planning to invest up to USD 341 million until the end of 2027 for the Nataka transition.

 

How do you ensure a steady supply of power for your mining operations?
Mozambique has vast potential for generating electricity from renewable sources, but there are inherent challenges in their application to our specific needs. Our operations run around the clock, so solar energy is currently inadequate as it is only available during daylight hours and the high cost of batteries is an obstacle for solutions that depend on energy storage.
Our power is supplied by EDM, the national utility company, and it is sourced from the hydropower plant at Cahora Bassa, which provides a steady stream of clean energy. We have backup generators for emergencies. As a listed company, we have emissions reduction targets for 2030 and 2040 that we are well on track to meet.

How are the company’s current operations and upcoming investments being financed?
Our healthy balance sheet and strong revenue stream position us well to finance our investments. We have conducted thorough cash flow projections and we have a revolving credit facility of USD 200 million, so we expect to amply cover the planned expenditures through our cash flow and debt.

What steps does Kenmare take to train its personnel and ensure operational and safety standards at its mines?
We make ongoing investments in programmes that range from entry-level education that ensures our employees operate safely and responsibly to advanced training that’s tailored to more sophisticated roles within the company.
Kenmare also offers a progression programme for specific career paths, providing dedicated mentoring and support for professional growth within the company. While we partner with external providers to cover some of our needs, a significant portion of the training is delivered in-house by our staff.
Developing a skilled Mozambican workforce has also been a priority for us. When we began operating in 2007, approximately 27% of our workforce was expatriate staff, and that share has gradually decreased to reach just 3% today. This is a testament both to the effectiveness of our training and the impressive capabilities of our Mozambican employees.
Our staff turnover rates are extremely low. We’re proud of the progress we’ve made in Mozambique and will continue investing in our talent pipeline.
Looking beyond human resources development, we want to maximise the benefit that our operations bring to Mozambique. To that end, we spend as much of our operating expenses as possible in-country by sourcing from local providers.

What avenues is Kenmare considering for growth in the next few years?
Our primary focus for the next five years remains the transition to the Nataka ore zone. The move will begin in late 2025 and work on associated infrastructure will continue through to 2027. The overarching objective is to maintain current production levels for the long term. Towards expansion, we are conducting a feasibility study in Congolone, roughly 50 kilometres north of our existing operations, which may determine the direction of our future efforts.

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