LUSA 07/20/2024

Lusa - Business News - Mozambique: Moma mine exports down 18% in Q2

Maputo, July 19, 2024 (Lusa) - Exports from the Moma mine in northern Mozambique, one of the world's largest producers of titanium and zircon, fell by 18% in the second quarter of this year, compared to 2023, but the operator said it had a ‘strong order book’.

According to information provided to the market by Kenmare, which operates the mine, in three months there were shipments of various finished minerals totalling 234,700 tonnes (heavy sands, zircon, ilmenite and rutile), also down 3% on the first quarter, which in turn amounted to 477,600 tonnes in the first half of the year, a year-on-year drop of 14%.

The drop in shipments from the operation on the coast of Nampula province was due ‘mainly to bad weather conditions’ and ‘operational maintenance’, which affected ‘shipping times’, the company explained.

‘The encouraging market conditions continued in the second quarter of 2024, with particularly robust demand for Kenmare's ilmenite, and the company has a strong order book for the third quarter,’ reads the same report.

‘Demand for our products remains robust and ilmenite prices in the first half were above our expectations, driven by the increase in global pigment production,’ said Kenmare's director, Michael Carvill, quoted in the report.

The company ended the same period with $58.5 million (€53.5 million) in cash, after paying out $34.4 million (€31.5 million) in dividends and having ‘repaid all debts’, being ‘well capitalised to fund the upgrade and transition’ of the mine.

Kenmare, of Irish origin and operating in Mozambique through subsidiaries in Mauritius, previously announced that it had paid $30.5 million (€27.8 million) in 2023 to the Mozambican state in fees and taxes.

It is one of the world's largest producers of mineral sands, listed on the London and Dublin stock exchanges, with production in Mozambique accounting for approximately 7% of global titanium raw materials.

The company supplies customers operating in more than 15 countries who use the heavy minerals in paints, plastics and ceramics.

The Moma mine contains reserves of heavy minerals including titanium, ilmenite and rutile, which are used as raw materials to produce titanium dioxide pigment, as well as the relatively high-value zirconium silicate mineral, zircon, according to the company.

The mining company announced in April 2023 that it plans to explore a new lode within two years, in the Moma concession, signalling the longevity and profitability of the mine.

PVJ/ADB // ADB.

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