Kenmare Resources signs $220m Mozambique mine deal

ISEQ listed Kenmare Resources has announced it has signed a $220m (€180m) joint venture deal to develop the Moma titanium mine in Mozambique.

Kenmare and partners Multiplex of Australia and Bateman BV have agreed to complete the project in two years.

The contract is established on a base price of $220m(€180m) with provisions for cost overruns up to $240m (€197.2m), the company said.

The financial plan for the project envisages revenue generation of around €85m (€69.8m) per annum over a 20-year period with operating costs of $23m (€18.9m) per annum.

The project will be funded by a debt package with a lender group comprising the European Investment Bank, The African Development Bank, Netherland's FMO and South Africa's ABSA which are lending under an Export Credit Insurance Agency of South Africa export guarantee.

Multiplex is a large contracting group based in Australia with operations stretching around the world. Multiplex specialises in large complex construction projects. Bateman is an international engineering group with specific mineral sands experience and experience of working in Mozambique.

Kenmare's share price rose 1c to €0.30 on the ISEQ this morning. In London, Kenmare firmed 1p to £0.19-3/4.