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Results of DFS for Relocation of Wet Concentrat...
Results of DFS for Relocation of Wet Concentrat....
About this update from Kenmare Resources Plc
[{"type":"text","content":"\n Results of DFS for Relocation of Wet Concentrator Plant B to PiliviliKenmare Resources plc (“Kenmare” or “the Company”)4 June 2019Results of DFS for Relocation of Wet Concentrator Plant B to PiliviliKenmare Resources plc (LSE:KMR, ISE:KMR), one of the leading global producers of titanium minerals and zircon, is pleased to announce the results of the Definitive Feasibility Study (“DFS”) for the relocation of its Wet Concentrator Plant (“WCP”) B to the Pilivili ore zone at its Moma Titanium Minerals Mine (the “Mine” or “Moma”) in northern Mozambique.Overview The project has been approved by the Board, following the completion of the DFSThe DFS confirms the technical and economic feasibility of relocating WCP B to Pilivili, following the completion of the existing mining path at Namalope in Q3 2020The move of WCP B is the last of three internal growth projects required to increase production to 1.2 million tonnes per annum (“Mtpa”) of ilmenite (plus co-products of zircon and rutile)Pilivili is the highest grade ore zone in Moma’s portfolio and is expected to contribute an additional 130,000 tonnes per annum of heavy mineral concentrate (“HMC”) productionWCP B will be relocated by specialist contractors on a purpose-built road from Namalope to PiliviliThe key additional infrastructure required to commence production from Pilivili includes a HMC pumping system and power infrastructure, in addition to a 23 kilometre (“km”) purpose-built roadThe total capital cost estimate for the relocation is US$106 million, including US$15 million contingency, which Kenmare expects to fund from its balance sheet and internally generated cash flowApproval was received for the Environmental, Social and Health Impact Assessment (“ESHIA”) for Pilivili in May 2019The relocation and re-establishment of WCP B is expected to commence in Q3 2020 for a period of up to 12 weeks – the commissioning of WCP B at Pilivili is anticipated in Q4 2020Statement from Michael Carvill, Managing Director:“The results of the DFS confirm our plans for relocating WCP B to Pilivili. Kenmare is on track to deliver a 20% increase in production at Moma on a sustainable basis from 2021 and the move of WCP B to Pilivili will be the final step in achieving this goal. Earlier this month we received the first of two environmental permits required for the relocation and we expect to...