Africa-Press – Mozambique. The London-based mining company Savannah Resources on Wednesday announced that it is pulling out of Mozambique and transferring its share of the Mutamba heavy mineral sands project, in the southern province of Inhambane, to its partner Rio Tinto in return for 9.5 million US dollars.
The Mutamba concession was awarded to the joint venture between Savannah and Rio Tinto in November 2019. Back then, Savannah Resources stated that the Mutamba project was “one of the most significant undeveloped heavy mineral sands deposits in the world”, containing “an indicated and inferred mineral resource of 4.4 billion tonnes at 3.9 per cent total heavy minerals”.
According to a statement from Savannah Resources, its staff in Mozambique will be transferred to Rio Tinto.
Savannah Resources added that it will immediately begin divesting its residual interests in Mozambique, in particular the mining concession at Matilda which borders Mutamba.
The company states that it intends to focus on developing its Barroso Lithium Project in Portugal. Chief executive officer David Archer commented, “with the company’s focus moving to the further development and commercialisation of the Barroso Lithium Project, Mutamba has become non-core to Savanah and an exit from Mutamba has been agreed with our partner, Rio Tinto. The transaction allows us to concentrate both management resources and our increased cash reserves exclusively to lithium in the Iberian Peninsula”.
He added, “Savannah is also particularly proud of the extensive community engagement programmes it has undertaken, which covered infrastructure, agriculture, trade, education and public health. Our enduring legacies include the establishment of infrastructure that continues to provide clean drinking water for around 1,200 families and off-grid solar power for 5,300 families; over 600 local farmers deriving higher income from the sale of donated crops; and the 430 graduates that have benefited from the vocational training centres established in Jangamo and Inhambane, the majority of whom quickly found employment related to their training”.
Heavy mineral sands typically contain the ores ilmenite (iron titanium oxide), rutile (titanium dioxide) and zircon (zirconium silicate). Titanium dioxide is used in the manufacture of white pigments used in products such as paper, paint, plastics, and toothpaste. Titanium can be alloyed with iron, aluminium, and other metals to produce lightweight alloys for the aerospace industry and many other applications. Zircon (zirconium silicate) is used in ceramics, water and air purification systems, nuclear fuel rods and catalytic fuel converters.
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