Kenmare on target in Mozambique

LISTED KENMARE Resources is on schedule to hit full production from its titanium mine in Mozambique before the end of the year.Its chairman, Charles Carvill, said yesterday that a programme to deal with difficulties at the mine in Moma, Mozambique, was virtually finished.

“As a consequence, we are on target for full production before the end of the year,” he said.

The company began work on the programme last year after encountering problems with plant, equipment and other issues.

The company said yesterday the progress had led to steady increases in production.

In July, the mine produced a record amount of ilmenite, a mineral from which titanium is extracted, and heavy metal concentrate (other ores which the mine produces).

From the second half of this year the company intends publishing income and operating costs from the mine.

Up to this, net revenues were capitalised in development spending.

In the first half of this year, Kenmare lost $199,000 before tax, compared with $8 million in the first six months of 2008. Losses per share were 0.02 US cent, from 1.09 cent last year.

Operating expenses for the six-month period were $359,000, while finance income was $160,000.

Kenmare reported yesterday that the recession has hit demand for titanium feedstock, although it said the extent of the decline is not clear.

The company added that as supply and demand have since been brought into line, growth should be restored in 2010.

The Moma mine has its own shipping terminal. This month Kenmare bought a second trans-shipment vessel as a back up to its existing craft, the Bronagh J.

Titanium is used in paints, pigments and cement, and its alloys are used in components for military and civil aircraft, ships and a range of industrial equipment.