Marula Mining, an African mining and development company, has announced that its Board has approved a five-year budget for the operation of the Kilifi Manganese Processing Plant in Kenya. The budget follows a series of agreements aimed at the purchase, sale, and transport of manganese ore, positioning the company to commence processing operations in April 2025.
The Kilifi Plant, located in the Tezo area of Kilifi County, is an 80% subsidiary of Marula through Muchai Mining and Processing Kilifi Pty Ltd. According to the approved budget, the plant is expected to sell 1.07 million tonnes of manganese, generating gross revenues of US$182.5 million and a pre-tax operating cash flow of US$63.5 million over the next five years.
The budget anticipates a post-tax cash flow of US$43.4 million and includes projections of government taxes at 30%, amounting to US$20.1 million. The net present value (NPV) before tax at a 10% discount rate is calculated to be US$48.3 million, with an internal rate of return (IRR) exceeding 100% per annum.
These financial forecasts are based on current agreements, including a five-year Agency Framework Contract with Baosteel Resources South Africa for manganese sales and a logistics agreement with Scan Global Logistics Kenya for ore transportation. The plant is expected to process up to 20,000 tonnes per month of manganese ore sourced from three supply agreements.
Marula Mining’s CEO, Jason Brewer, expressed confidence in the plant’s ability to commence operations as scheduled and meet initial delivery commitments. The company has emphasised that these projections are based on current conditions and there is no guarantee that the anticipated results will be achieved.
The Kilifi Plant aims to source the majority of its workforce from local communities, with a commitment to hiring 100% of casual or part-time employees from the area. Funding for plant modifications and future expansions is expected to come from operational cash flow.
