Dual-listed Kenmare Resources has produced first heavy mineral concentrate in late February from the wet concentrator plant C at the Moma titanium minerals mine in northern Mozambique.
As part of its growth strategy to increase its production to 1.2 Mtpa of ilmenite from 2021, Kenmare Resources previously announced three development projects.
The first development project, a 20% expansion of wet concentrator plant B, was commissioned successfully in late 2018.
The second project was for the development of a third mining operation. Having delivered its first heavy mineral concentrate production, wet concentrator plant C will soon undergo acceptance and performance testing, following completion of which management of wet concentrator plant C will be transferred from the development team to the operations team. The project remains on track to be completed within its US$45 million budget.
The third project, the relocation of wet concentrator plant B from Namalope to the high grade ore zone at Pilivili, is on schedule to take place in Q3, 2020. Approximately 60% of contracts in relation to this project have been awarded and construction of the purpose-built road is well underway.
“The construction of wet concentrator plant C represents the last phase of our outlined mining capacity increase. Later this year, the relocation of wet concentrator plant B will position us to achieve our targeted production rate of 1.2 Mtpa of ilmenite from 2021,” says Kenmare Resources MD Michael Carvill.
“These projects are expected to enhance our margins, provide stronger cashflow stability and position us in the first quartile of the industry revenue to cost curve. Following the completion of our capital expenditure programme, we expect to generate significantly stronger free cash flow, which will enable us to provide higher returns to shareholders,” Carvill concludes.