Dingsheng Minerals of China will soon start processing heavy sands in the Chibuto region of the Mozambican province of Gaza, AIM reports.
The Mozambican state-run news agency quotes a provincial official, Castro Elias, as saying the company has tested a heavy sands processing facility there which has the capacity to process 10,000 tonnes a day.
Mr Elias said the Chibuto heavy sands were good quality, containing little chromium.
Dingsheng Minerals now intends to increase its processing capacity in Chibuto to 100,000 tonnes a day by the middle of next year.
The company is considering building a port in Chongoene on the coast of Gaza so the heavy sands it processes can be shipped abroad, AIM says.