Exploration and development firm Savannah Resources has conditionally secured mining concessions for the Mutamba project from the Minister of Mineral Resources and Energy in Mozambique.
Rio Tinto’s wholly owned subsidiary, Mutamba Mineral Sands, and Savannah’s 100%-owned subsidiary Matilda Minerals secured the mining concessions. Together they form part of the Mutamba Project Joint Venture (JV).
The mining concessions 9735C and 9229C were awarded for the Mutamba Heavy Mineral Sands project in Mozambique, over which Savannah operates a JV with Rio Tinto.
Mining Concession 9735C has a term of 25 years, while concession 9229C has a term of 25 years with a possibility of an 25 additional years towards mine-life extension.
Mutamba Project consists of undeveloped heavy mineral sand deposits and covers a total area of 280.74km². They are located in the districts of Inharrime and Jangamo in southern Mozambique.
Savannah Resources CEO David Archer said: “The Government of Mozambique evaluated the Mining Concession applications rigorously, and we are pleased that the Mining Concessions have been conditionally awarded for a term of 25 years each upon satisfaction of customary requirements for granting of mining licenses.
“The project area covered by the Mining Concessions contains an Indicated and Inferred Mineral Resource of 4.4Bt at 3.9% total heavy minerals and constitutes one of the largest remaining mineral sands deposits in the world that is yet to be developed.
“With the approval for award of Concession 9228C now in the final stage and given that the demand for global titanium feedstocks remains very strong, these Mining Concessions hold the potential as a significant global project within the sector.”
Last month, the Public Authority for Mining (PAM) in Oman indicated intentions to grant two mining licences for the Mahab 4 and Maqail South high-grade copper deposits to Savannah Resources.