Maputo, Mozambique — Authorities in Maputo say that Ilmenite and rutile mining in Mozambique's Moma district in the northern province of Nampula, could start in early 2003.

In the project now assessed as viable, the two titanium ores as well as zircon (zirconium silicate) would be mined at an estimated 650,000 tonnes a year for annual export earnings of around 20 million US dollars.

An Irish-based company, Kenmare, has set up a subsidiary -Kenmare Moma Mining Ltd - to handle the project.

The company, which earlier this week presented the Mozambican government with a viability study, said it already has guaranteed buyers in the US, Europe, Japan and South Africa for more than 50 per cent of the potential production.

Total investment in the project is put at 160 million dollars, and Kenmare has already spent 60 million dollars in research and preparatory work.

Kenmare financial director Tony McCluskey told reporters "we need another 100 million dollars, but have already contacted several European financial institutions, such as the European Investment Bank, who have shown interest."

Deputy minister of Mineral Resources and Energy Esperanca Bias said the project would employ 435 people directly, and indirectly would create many more jobs.

Prospecting for minerals in Moma began in 1987. Initially a Yugoslav company was doing the work, but bailed out, obliging the government to turn the project over to Kenmare in 1991.