Production of ilmenite and titanium at Kenmare Resources’ Moma heavy sands site, located in the northern province of Nampula and listed on the London Stock Exchange, increased by 25 percent in the third quarter and returned to an annual exploration rate of 1.2 million tonnes as a result of higher exploration and ore rates, Kenmare’s Managing Director Michael Carvill announced, pointing to the period ending 30 September.
Shipments increased 48% quarter on quarter, with Kenmare “expecting the fourth quarter to be its best of the year, both in terms of shipments and production,” Carvill said.
“Prices for our products increased again in the third quarter and our order book for the fourth quarter is largely committed. However, demand weakened during the quarter, affected by Chinese and European market conditions. As for next year, we estimate that demand for titanium raw materials will moderate, but we believe the fundamentals of our product markets remain robust,” noted Michael Carvill, quoted by the portal “Mining Weekly”.
Heavy mineral concentrate (HMC) production for the third quarter was 443 900 tonnes (t) – a 7% increase compared to Q3 2021, due to a 3% growth in excavated ore volumes and a 2% increase in ore grades.
Ilmenite production was 304 700 t, a decrease of 3% compared to record production in Q3 2021.
Primary zircon production was 17 300 t, an increase of 10% compared to the second quarter, benefiting from increased HMC processed and improved recoveries.
Total shipments of finished products were 285 600 t, a decrease of 11% compared to Q3 2021, due to reduced transportation capacity as a result of the transhipment of the Bronagh J vessel being in dry dock until the end of August and poor weather conditions.
During the period under review, according to the Mining Weekly portal, higher ilmenite prices were achieved and contracts are in place for the majority of next quarter’s sales, despite weaker demand for titanium pigment from China and Europe.
Demand for Kenmare’s zirconium products remained strong in the quarter and continued to do so in the fourth quarter, supported by supply constraints, although the global zirconium market is showing signs of weakness, particularly in China, the company said.
