Kenmare Resources plc (LSE:KMR, ISE:KMR), one of the leading global producers of titanium minerals and zircon, which operates the Moma Titanium Minerals Mine in northern Mozambique, is pleased to announce that the Wet Concentrator Plant (“WCP”) C development project produced its first Heavy Mineral Concentrate (“HMC”) in late February 2020.
As part of its growth strategy to increase production to 1.2 million tonnes per annum of ilmenite from 2021, Kenmare previously announced three development projects.
The first development project, a 20% expansion of WCP B, was commissioned successfully in late 2018.
The second project was for the development of a third mining operation. WCP C delivered its first HMC production in late February 2020 and acceptance and performance testing will commence shortly, following completion of which management of WCP 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 WCP 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.
Statement from Michael Carvill, Managing Director:
“The construction of Wet Concentrator Plant C represents the last phase of our outlined mining capacity increase. Later this year we will move Wet Concentrator Plant B from Namalope to the high grade Pilivili ore zone, positioning us to achieve our targeted production rate of 1.2 million tonnes per annum of ilmenite from 2021.
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.”
Kenmare will release its 2019 Preliminary Results on Thursday, 19 March 2020.