Mozambique mine success reduces Kenmare group losses

KENMARE Resources, whose ilmenite mine will account for over 2% of Mozambique’s economy at full production, reported a dramatic fall in losses due to lower operating expenses in the first half of 2007.

Ilmenite is used extensively in the pigment, plastic and paper industries. Shipment of product is due to start in November as the group’s Moma mine moves to production.

Moma is estimated to generate export sales of about $75 million (€53m) per annum at full production or $1.5 billion (€1bn) over the life of the project and could contribute up to 2.4% to the GDP of Mozambique, according to the African Development Bank.