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The mine and port

The project cost is estimated at US$850 million. It comprises a mineral sands operation in Madagascar including a US$145 port (US$35 million contribution from Government of Madagascar) and a US$190 million upgrade of Rio Tinto's ilmenite processing facilities in Canada. Construction started in quarter four 2005. The project is being built in two phases.

Phase 1

First production from the operation is expected in late 2008. Initial capacity is projected at 750,000 tonnes of ilmenite per year.

The ilmenite will be smelted at Rio Tinto's facilities at Sorel in Quebec, Canada, to produce 475,000 tonnes per year of a new high grade (91 per cent TiO2 content) chloride slag by 2012. This will require an upgrade of storage and handling facilities as well as their associated ancillary services.

Phase 2/3

Phase 2/3 could ultimately support ilmenite production of some two million tonnes per year.

Dredging the mineral sands

The mineral sands will be mined by a floating dredge. Vegetation will be removed ahead of the dredge. The topsoil will be stored for use in rehabilitation. The dredged sand, up to 20 metres deep, will be separated by gravity into concentrates of ilmenite and zircon. The sand residue will be returned to the pond for subsequent rehabilitation of the land. The products will be trucked 15km along a new road to a new port. See Richards Bay Minerals, a Rio Tinto mineral sands dredging operation in South Africa.

The port

The deep sea, multi-use public port is being built in Ehoala, near the town of Fort-Dauphin. The mine will be the port's key initial customer. Over time, it is expected the port will make an important contribution to economic development of the whole region.

QIT Madagascar Minerals will manage the port operations. At the end of the life of the mine, the port will fall under the responsibility and control of the Government of Madagascar. The mine's life is projected at 40 years from first production in 2008.