Multi-commodity mining company Savannah Resources’ subsidiary Matilda Minerals, has been issued a new mining concession by the Minister of Mineral Resources and Energy in Mozambique.
This new concession forms a key part of the world-class Mutamba heavy mineral sands project in Mozambique, over which the company operates a joint venture with mining major Rio Tinto.
The mining concession, which comprises Licence 9735C, covers 11 948 hectares and is valid to April 2044, with the possibility of an additional 25-year extension.
Licence 9735C is the first of three contiguous concessions to be issued that will result in the full tenement permitting of Mutamba.
The mining concessions are well served by road and air transport and are situated near the Port of Inhambane. A 30 MVA electricity substation was inaugurated in January 2019 and sits at the edge of the project area. In addition, there is a 32 MVA electricity substation less than 100 km away in the town of Massinga.
“We are delighted with the issue of the first Concession by the Government of Mozambique, and now look forward to the issue of the remaining two mining licences, 9229CC and 9228C, says Savannah Resources CEO David Archer.
“When combined, these three concessions contain an indicated and inferred mineral resource of 4.4 Bt at 3.9% total heavy minerals; this makes Mutamba one of the most attractive undeveloped mineral sands deposits in the world. Notably, given that global demand for titanium feedstocks is strong, the award of these licences will facilitate the development of a globally relevant project.
“Our focus is now on progressing the prefeasibility study (PFS) at Mutamba towards completion, which, upon delivery, will trigger the increase in our interest in the project from 20% to 35%,” says Archer.
Savannah Resources currently holds a 20% interest in the Mutamba but can increase this to 35% upon delivery of the PFS, which is currently underway, and ultimately to 51% upon delivery of a feasibility study.