London — The Irish-based mining company, Kenmare Resources, announced on 13 January that it has signed a Power Supply Agreement with the Mozambican state electricity company, EDM, to provide the Moma Titanium Minerals Project with low cost electricity.

The 20 year long agreement paves the way for low cost, hydro-electrically generated power to be available to the project from the beginning of production.

To connect the project to the national grid, a 170 km long, 110 kV transmission line will be built from an existing substation at Nampula.

According to Kenmare, an Environmental Impact Assessment on the proposed power line has been approved by the Mozambican government.

The project is based in Moma district, on the coast of the northern province of Nampula, where the heavy sands contain world class deposits of titanium minerals. It is planned to produce 600,000 tonnes of ilmenite, 25,000 tonnes of zircon and 12,000 tonnes of rutile per year.

The mining of the heavy sands could begin in 2005. It is hoped that the project will employ over 400 people directly, with many more jobs being created in the surrounding area.