Kenmare Resources P.L.C., Ireland, has awarded the joint venture
between BATEMAN and Multiplex Ltd of Australia a contract to establish
a mineral-sands processing facility at Moma in the north-east of Mozambique.
The total value of the contract is US$240M, of which $220M is a lump-sum
turnkey component and $20M is a provision to cover potential cost
overruns, after which the total cost to Kenmare is fixed and the joint
venture will be liable for additional costs.
The feasibility study for the project was completed about 18 months
ago. Multiplex, with its considerable experience in large construction
projects, then became involved in the project and engaged BATEMAN
in a joint venture to contribute the necessary process-engineering
expertise for the project and its understanding of working in southern
Africa. The integrated BATEMAN / Multiplex team will be jointly responsible
for all aspects of the project.
This will be the second project undertaken by BATEMAN for Kenmare.
In 1994, BATEMAN supplied and commissioned a 7 500 t/yr graphite-processing
plant at Ancuabe in northern Mozambique.
The process at Moma will be based on proven technology, comprising
dredging, concentrating and separating the mineral sands. The wet-
and dry-processing plants to be used are existing units acquired from
BHP-Billiton's Beenup project in Western Australia, which have been
disassembled and will be shipped to Mozambique. The dry separation
plant will be upgraded under subcontract to incorporate an enhanced
zircon processing circuit and a new rutile circuit.
Infrastructure for the plant, in the form of an access road from
the beach to site, export jetty with product storage and loading facility,
electrical generation and transmission and personnel accommodation,
will also be provided. Access to the site will pose logistic challenges.
Some of the project's larger components, such as the process plant
from Australia, will be beach landed, while other items will be brought
in from South Africa via Zimbabwe and Malawi.
With resources to sustain production at the initial production level
for 80 years, the annual production will be approximately 615 000
t of three ilmenite products containing between 50 and 60 % titanium
dioxide (TiO2), approximately 40 000 t of premium- and 20 000 t of
special-grade zircon and 15 000 t of premium-grade rutile. Moma will,
it is believed, have the lowest production cost of mineral sands apart
from the existing Richards Bay operation in South Africa. In the first
20 years, it is estimated that the plant will generate between $85M
and $90M annually against projected costs of $23M.
The Moma project will, after the Mozal aluminium project near the
capital, Maputo, be the second-largest project to date in Mozambique.
Significantly, it is located in one of the poorer and less developed
areas of the country where it will ultimately, in full production,
provide employment for about 500 workers. During the construction
phase as many as 2 700 site workers could be employed.
It is expected that the project will take about 27 months to complete
once the funds have been secured and the contract becomes effective,
which is anticipated soon after mid-year. It will then take about
two months to issue all the enquiries and physical construction should
commence early in 2005. Much of the purchasing for the project will
be done in South Africa to comply with the financing conditions for
the project, with some components being sourced from elsewhere.
More details may be obtained from Tollie Nel, BATEMAN General Manager,
Industrial Minerals, on +27-11-899-2124 or email industrial.minerals@batemanengineering.com.
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