MIGA has issued guarantees of $1.8 million and $19 million to Kenmare Resources P.L.C of Ireland and Kreditanstalt für Wiederaufbau (KfW) of Germany for their respective $2 million equity investment in, and $20 million non shareholder loan to, the Mozambican branches of Kenmare Moma Mining Limited (KMML) and Kenmare Moma Processing Limited (KMPL). Kenmare's guarantee is for a period of fifteen years and is against the risk of Transfer Restriction and KfW's is for a period of fourteen years and provides coverage against the risks of Transfer Restriction, Expropriation, War and Civil Disturbance, and Breach of Contract.
The project involves the dredge mining development of a large heavy mineral sands deposit located in the Nampula province in north-east Mozambique. The province is one of the poorest in the country and in an area that has not yet benefited from the recent FDI flows into Mozambique. The Moma project is one of two titanium mineral projects under active consideration, which if fully developed, establish the country as one of the world's foremost producer of titanium minerals. The project will have significant development impacts providing export and tax revenues, know-how and technology transfer, and infrastructure development. The latter will include improved access to roads, air strips, electricity, water supply, and telecommunications. The Moma project will create an estimated 1,200 local jobs in the construction phase and an estimated 450 local jobs while in operation. Furthermore, the procurement of local goods and services is expected to create an additional 1,500 indirect jobs. The project expects to generate $70 million in export earnings annually and $1.5 billion over its life. The project will also contribute more than significant taxes over the life of the mine.
At the community level, 160 unskilled local residents will be employed and have their first opportunity for employment outside the informal sector. Accommodations will be built for miners and include service buildings, medical and recreation facilities, and modern amenities. Moreover, KMML will collaborate with local NGOs to ensure that the project will maintain regular consultations with the community and benefit the local area. The project addresses two of MIGA's priority areas: an investment in an IDA country and in Africa.
