Kenmare issues Mozambique update

Exploration company Kenmare Resources said production at its mineral mine in Mozambique rose by 22 per cent in the fourth quarter of 2009.

Production of heavy mineral concentrate at the titanium mine rose to 280,200 tonnes in the last quarter of the year compared with the previous quarter's 230,000 tonnes. The company said production of heavy mineral concentrate is now at full design level.

The second half of the year also saw a rise in the oproduction of the material, increasing 61 per cent to 510,200 tonnes.

The production of finished ilmenite was up 13 per cent in the quarter as a result, Kenmare said, increasing from 130,000 tonnes to 147,100 tonnes, while zircon production in the fourth quarter remained at similar levels to the previous three-month period, at 5,400 tonnes.

Tonnage of finished products delivered to customers' vessels continued its upward trend, climbing 6 per cent in the quarter to 139,000 tonnes.

For the second half of 2009, ilmenite production rose 39 per cent to 276,358 tonnes, while tonnes of finished products shipped rose 83 per cent to 270,000 tonnes compared to the first half of the year.

The company said the recovery of minerals in this plant is below target, and it expects existing optimisation projects to bring it up to target levels during the first half of 2010.

Kenmare said the market outlook is predicting a continued rebound in pigment demand in 2010 that is expected to fuel demand for titanium minerals. This will be driven mainly by increased demand from China and other developing countries.

"We are delighted with the continued production improvements at Moma and the improving market outlook for titanium minerals and zircon," said Kenmare's chairman Charles Carvill.

"We believe that Kenmare is well placed to take advantage of these strong markets given its large resource base at Moma and its facilities at the mine."