By our staff reporter
Kenticha Mining plc (KMPLC) is set to generate USD 400 million courtesy of the export of value added energy mineral per single year.
The company which recognized the contribution of stakeholders, in its most recent event held on Tuesday August 15 at the Sheraton Addis, stated that with the coming of its processing equipment, it will kick start the lithium concentrate production from the former tantalum concentrate mine facility located at Kenticha locality, Seba Boru woreda in Guji zone of Oromia region, 600 km south of Addis Ababa.
It can be recalled that with the aim to export value added mineral production, the government had suspended the production and export of tantalum concentrate, a business that was ongoing since the late Derg era.
Following the move, government had been looking for potential private firms that would partner in the production of value added product, mainly lithium. As a result, Kenticha Mining plc which was established by the Oromia regional government, and private investors including Australia based, African Mining and Energy (AME), known for its community based mining approach, finally took on the project.
The company received a large scale mining license in July last year which covered the Kenticha tailings.
According to the company presentation at the recognition and status disclosure event, the tonnage of tailings were estimated at 5.4 metric tons, and the residue of gravity treated material by Ethiopian Mineral, Petroleum & Bio-fuel Corporation for tantalum from the weathered portion of the pegmatite was conducted.
As cited at the event, from December 2022 to January 2023, KMPLC sampled tailing materials at depths of 0.5 to three meters.
So far, two spodumene DMS/ Dense Media Separation/ processing plants have been constructed in South Africa with the first plant having a capacity to process 20 tons per hour, which is to arrive early September. The second plant which is slightly better has 50 tons per hour capacity and will reach Djibouti in October.
According to the company, the third and largest DMS with 200 tons per hour is said to be manufactured and transported to the site in the near future.
The company disclosed that the Kenticha pegmatite is one of the largest pegmatites in the world that it is set up to 100 meters thick, extending over two km.
The ore-body was estimated to contain 87.7 million tons of ore grading at 0.78 percent lithium oxide with appreciable quantities of tantalum and niobium.
As the firm described, it has embarked on a drilling program to upgrade and increase the current mineral resource estimate, “Eventually some 40,000 meters of drilling will be completed at Kenticha to fully unlock the value of the deposit.”
As per the plan, the mining will commence in the second quarter of 2024 in the southern high grade pit at the site, “This strategy will enable KMPLC to accelerate cash flow while continuing to drill out the Kenticha ore body to fully delineate the ore body and capture its full size.”
According to officials, the company civil works have been completed for the arrival of the plants.
As per the plan, 2023 will see the commissioning of the first processing plant and commencement of production.
In the coming year, KMPLC has projected to produce 100,000 tons of lithium concentrate that will generate USD 400 million in 2024 alone. If it attains the projection, it will almost be the same value to what the country generated from the mining sector export in total during its heyday period, about a decade ago.
The company scheduled to generate USD 937 million, USD 1.05 billion and 2.4 billion from the export of 250,000, 300,000 and 800,000 tons of lithium concentrate in the year from 2025 to 2027 respectively.
In the past few years, the company, which proposed to come up with the value additional production in partnership with the regional government, has followed up with the same by undertaking a detailed study to uplift the development with value addition production.
Buyers from more than 12 countries have shown signs of interest for the off take agreement.
The mines present a globally important tantalite source in the Neoproterozoic Adola Belt, Qenticha locality in Seba Boru wereda, Eastern Guji zone, southern Ethiopia.
For three decades, the country has exported the tantalum ore of the mineral, which faced criticism from experts who claimed that it did not fully benefit the country.
AME claimed that it has substantial records alongside major project developments in Africa and has been responsible for originating sponsored projects with more than a billion dollar investment throughout the continent.