Business

Kenmare Resources to push ahead with upgrade plan ahead of move to new mining zone

Capital expenditure for project will be up to $331m by the end of 2026

Michael Carvill has been managing director of Kenmare since 1986. Photograph: Dara Mac Dónaill

Ciara O'Brien
Thu Dec 14 2023 - 08:08

Kenmare Resources is was pushing ahead with an upgrade to its wet concentrator plant that will enable its transition to a new mining zone in Nataka.

The company said the project to upgrade wet concentrator plant A would deliver consistent production volumes in the future and maintain the company’s low operating costs.

The plant is due to complete mining at Namalope in late 2025, beginning its transition to the Nataka ore zone. This will require the replacement of wet concentrator plant A’s two existing dredges with higher-capacity dredges and the addition of a desliming circuit, along with a tailings storage facility. The cost of that is estimated at $225 million, with infrastructure costs estimated to be $91 million -106 million, bringing capital expenditure to between $316 million -331 million up to the end of 2026.

Kenmare has also deferred the final investment decision for an upgrade of wet concentrator plant B, prioritising the current project.

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Kenmare is one of the leading global producers of titanium minerals and zircon and operates the moma titanium minerals mine in northern Mozambique.

The company also issued an update on production for 2023, saying it expected to be in line with revised guidance issues in July, with 2024 also expected to be broadly in line with that guidance.

“Ilmenite pricing in 2024 is expected to be lower than 2023,” said managing director Michael Carvill. “However, Kenmare expects improved demand to emerge in 2024, as the year progresses and believes the medium-term and long-term fundamentals for all products remain strong.”

Kenmare is due to complete refinancing of debt facilities in the first quarter of 2024, with the existing $40 million revolving credit facility already renewed to end in 2024.

Dividends in respect of 2023 are expected to be broadly in line with 2022.

Ciara O'Brien

Ciara O'Brien

Ciara O'Brien is an Irish Times business and technology journalist

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