Kenmare Resources ‘on track’ for record production levels

A third quarter update reported a 26% drop in shipping volumes

Michael Carvill, managing director of Kenmare Resources, said the third quarter represented another record quarter for Kenmare’s ilmenite production. Photograph: Bryan O’Brien

Michael Carvill, managing director of Kenmare Resources, said the third quarter represented another record quarter for Kenmare’s ilmenite production. Photograph: Bryan O’Brien

 

Titanium and zircon producer Kenmare Resources is on track for its “highest ever” annual ilmenite production, it said in a third quarter production report.

The north-Mozambique focused miner said the third quarter represented another “record quarter” for its ilmenite production while Chinese demand for the product is beginning to improve following a slowdown in the last few months.

Price increases are expected in the zircon market in the latter part of this year, Michael Carvill, the company’s managing director, said.

Shipment volumes dropped by 26 per cent to 208,400 tonnes in the third quarter and were 25 per cent lower than the second quarter having been negatively impacted by “reduced ship loading capacity” as the company’s main transhipment barge was tied up in regulatory matters during the quarter. Both of the company’s vessels returned to full service in September.

During the third quarter, Kenmare mined over 7.78 million tonnes of ore, producing 272,600 tonnes of heavy mineral concentrate (HMC). The tonnage mined represented an increase of 9 per cent on the same period in 2016, however the volume was down on the previous quarter due to “more challenging dredge mining conditions”.

Ilmenite production was 257,500 tonnes - a new quarterly record for the company - up by 6 per cent on the same quarter in 2016 while Zircon production declined by 8 per cent to 18,100 tonnes.