Marula Mining receives 5-year plan approval for Kilifi Manganese plant
Marula Mining PLC has secured Board approval for a five-year budget to operate the Kilifi Manganese Processing Plant in Kenya. Located in the Tezo area of Kilifi County, the plant is scheduled to begin processing operations in April 2025. The plant is projected to process 1.07 million tonnes of manganese ore over the five-year period. It is expected to generate US$182.5 million in gross revenue.
Pre-tax operating cash flow is estimated at US$63.5 million while post-tax cash flow is projected at US$43.4 million, after accounting for government taxes of 30% (totaling US$20.1 million). When it comes to investment returns, the net present value (NPV) before tax, calculated using a 10% discount rate, stands at US$48.3 million while internal rate of return (IRR) is projected to exceed 100% annually.
Market presence
Marula also signed a five-year Agency Framework Contract with Baosteel Resources South Africa for manganese ore sales. A logistics agreement with Scan Global Logistics Kenya has been established for transporting the ore. The plant is designed to handle up to 20,000 tonnes of ore per month from three key supply agreements.
Marula holds an 80% stake in the Kilifi Plant through its subsidiary, Muchai Mining and Processing Kilifi Pty Limited. The firm committed to hiring 100% of casual and part-time staff from local communities. Operational cash flow will support future plant modifications and expansions.
CEO Jason Brewer expressed confidence in the plant’s ability to meet initial supply commitments and deliver strong financial performance. Marula’s shares are currently listed on the AQUIS Stock Exchange in London and A2X Markets in South Africa. The company is also considering listing on the Nairobi Securities Exchange and the Johannesburg Stock Exchange to expand its market presence.
While the financial outlook is positive, Marula cautioned that the projections are based on current market conditions and existing agreements, which are subject to change. The Kilifi Plant is expected to strengthen Marula’s position in the battery metals sector and enhance its role in Africa’s mining and development industry.
