Kenmare Resources sees ‘substantial’ rise in production

Improvements in last six months will drive ‘increased margins’ for Irish mining business

Kenmare Resources managing director Michael Carvill: said the business was benefiting from substantially higher average received prices compared with 2016. Photograph: Bryan O’Brien

Kenmare Resources managing director Michael Carvill: said the business was benefiting from substantially higher average received prices compared with 2016. Photograph: Bryan O’Brien

 

Irish titanium and zircon mining company Kenmare Resources has reported that production is up “substantially” in the first six months of the year.

The explorer, which operates the Moma mine in northern Mozambique, said the “strong production” compared with the same period last year would contribute to “increased margins” for the business.

“Good progress is being made to increase the production of primary zircon and the average quality of these products,” said managing director Michael Carvill.

“These improvements drive increased margins for the business, which is also benefiting from substantially higher average received prices in comparison to 2016.”

During the six-month period, Kenmare mined 8,976,000 tonnes of ore at an average grade of 4.46 per cent and produced 359,200 tonnes of heavy mineral concentrate.

Product volumes

Finished product volumes for the period included 248,300 tonnes of ilmenite and 19,200 tonnes of zircon, including 6,300 tonnes of a lower-grade secondary zircon product.

The tonnage of ore excavated was up 7 per cent in comparison with the same period last year, as mining reliability “continued to improve”.

Ilmenite production for the quarter was 248,300 tonnes, down 3 per cent on last year, as a result of increased circuit maintenance and campaigns to retreat spillage stockpiles.

It was, however, up 14 per cent compared with the previous six months due to improvements in operating time.

Zircon production for the period increased 14 per cent to 19,200 tonnes, with primary production increasing 18 per cent and secondary production increasing 5 per cent in comparison to the previous six months.

Kenmare shipped 279,600 tonnes of finished products, comprising 250,000 tonnes of ilmenite, 26,600 tonnes of zircon, including 9,400 tonnes of secondary grade zircon, and 3,000 tonnes of rutile.

The decline versus the 309,000 tonnes in the previous six months was due to normal shipping schedule variations.

The company’s half-yearly results in respect of the six months ended June 30th will be issued on August 22th.