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Management Team and Executives

MOZAMBIQUE - Energy & Mining

Gareth Clifton

Country Manager, Kenmare Resources

Bio

Gareth Clifton holds a BA economics degree from the University of Exeter and an MSc in African studies from the University of Edinburgh. He joined Kenmare in 2001 having worked as a general manager for Union Transport LDA. He previously held the position as manager for a Mozambican shipping agent and also worked for the UNDP.

"We currently employ approximately 1,650 full-time staff, with only 3% being expatriates, reflecting a workforce that is 97% Mozambican."

Gareth Clifton, Country Manager of Kenmare Resources, talks to TBY about recent investments, Topuito Industrial Park, and maintaining a strong local workforce.

What developments and new investments have occurred at Kenmare Resources lately?

We operate three mining operations, each with its corresponding Wet Concentrator Plant (WCP) labeled A, B, and C. In 2020, we successfully relocated WCP-B from Namalope to Pilivili, approximately 20km south, as it reached the end of its mining life in the Namalope deposit. This involved transporting a 7,000-ton equipment unit, measuring 60m by 80m and the height of seven story building, as a single unit—a remarkable logistical achievement. To facilitate this move, we constructed a purpose-built 66m-wide road and utilized self-propelled modular transporters (SPMTs). Despite the challenges posed by COVID-19 and closed borders, we secured specialist contractors with the flexibility of the Mozambican government, adhering to strict quarantine protocols. Remarkably, we completed the relocation on budget and on schedule, ensuring the continued operation of WCP-B in Pilivili.

Kenmare Resources has partnered with MozParks to create the Topuito Industrial Park. What are the anticipated outcomes of this project, particularly in terms of generating employment opportunities in Nampula province?

We collaborate closely with MozParks, a venture established on land previously mined and rehabilitated by us, which has been returned to the government. Our aim is to encourage international and national suppliers, including those based in Maputo, to relocate closer to our operations, thereby amplifying the local economic impact. While we are not the owners of MozParks, we actively support its objectives. Through partnerships with MozParks, we incentivize clients to establish their presence within the park, offering longer-term contracts to justify their investment. Ultimately, MozParks serves as a conduit for transferring knowledge, skills, and economic activity from major economic hubs such as Maputo to Nampula province, particularly Topuito.

 Kenmare is dedicated to sustainable practices within the industry. Can you highlight some of the initiatives the company has undertaken in this regard?

We established a not-for-profit development organization called the Kenmare Moma Development Association (KMAD) 20 years ago, independent of our mining operations, focusing on four main pillars: livelihoods and economic development, education, health, and water/sanitation. Since 2004, KMAD’s initiatives have included constructing three free community health centers, building over 70 classrooms for local school children and installing water supply systems to improve access to clean water. We fund programs to improve education quality in primary schools and provide mobile clinics for medical access. We support emerging agroforestry and conservation agriculture, with over 100 small-scale businesses financed, such as sample bag production, hardware stores, and bakeries. Financing varies based on project size, with interest-free loans provided for ventures like accommodation construction. This highlights our commitment to social support. We maintain a relatively low carbon footprint due to our use of hydroelectric power from HCB, meaning that over 90% of our electrical consumption is from a renewable source and minimizing emissions associated with electricity usage. However, diesel is consumed in our earth-moving equipment, with emergency generators historically used during the rainy season and dryers. To mitigate diesel consumption, in 2022, we implemented a rotary uninterruptible power supply system, delivering more consistent power supply to our Mineral Separation Plant. Gender diversity targets aim for 20% female representation in the Moma workforce by 2025, with current progress at 17%, well above the mining industry average of 12%. Our sustainability efforts extend to supply chain compliance with environmental and human rights policies, emphasizing sustainable practices among subcontractors.

How does Kenmare Resources train its workforce to ensure it delivers the highest quality to its clients?

We currently employ approximately 1,650 full-time staff, with only 3% being expatriates, reflecting a workforce that is 97% Mozambican. Our comprehensive training programs cover specific job skills, graduate development, scholarships, and in-house trade skills training at our dedicated center. Despite the risk of talent poaching from the oil and gas industry, our low turnover rate is attributed to our positive work environment, competitive salaries, and stability. Since the Moma Mine began production in 2007, we have maintained a strong reputation for career prospects, training opportunities and employee satisfaction, ensuring a committed workforce.

What are Kenmare Resources’ plans for 2024 and 2025?

In 2024 we are beginning preparations for the transition of WCP A to the largest ore zone in Moma’s deposit, which is called Nataka. Nataka constitutes over 75% of Moma’s Mineral Resources and by relocating WCP A to this area we are securing production from Moma for decades to come. Unlike the transfer of WCP-B in 2020, we plan to mine directly to Nataka from our current location without removing the plant from the water; however, this shift requires significant capital investment due to differences in ore characteristics, including higher slimes (clay) content. Key infrastructure upgrades include two new higher capacity dredges, a new desliming circuit, a tailings storage facility, power lines, substation and positive displacement pumping over 15-20km to our Mineral Separation Plant. The estimated investment for this transition amounts to USD315-330 million by 2027, with the majority allocated for the next two years, marking our next major milestone.

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