Irish exploration firm Kenmare Resources said it has successfully done a feasibility study confirming the viability of titanium mining in Mozambique.
Kenmare plans to mine titanium dioxide, a key component for the paint and textile industries, at its Moma site in Mozambique.
Kenmare chairman Mr Charles Carvill said the study showed "a large, long-life project with handsome margins and strong returns, operating in a sector which traditionally produces good return on investment".
After initial investment of $160 million in the first two years, Moma Titanium is expected to have an operating margin of 70 per cent and a cash flow of over $55 million per annum.
Subject to successful financing, it is expected that the project will be commissioned in end-2002 with commercial production in first-quarter 2003. AFP