Exploration company Kenmare Resources is to spend an estimated $250m to open a large titanium mine at Moma in Mozambique, according to the state daily newspaper Noticias.
The paper said Kenmare had signed agreements with the Mozambique authorities on Monday to mine in Moma.
In its interim results statement, Kenmare had said it was working with Mozambique's government on a framework to attract financing.
Kenmare has been prospecting for titanium in the area since 1987. A final study had shown that the project was technically feasible and commercially viable, while Kenmare had already completed a mining licence and taxation arrangements with Mozambique's government.
Titanium ores are used in pigments, ceramics and blast furnaces, while titanium is a strong, light-weight metal alloy used mainly in the manufacture of aircraft parts.
The company's financial director, Tony McCluskey, told the paper that thousands of tonnes of titanium ore, worth around $70m, would be exported each year.
