Kenmare Resources plc reported a “challenging” first quarter after operations were disrupted by severe lightning at the Moma titanium minerals mine in northern Mozambique.
PRODUCTION
The operator’s trading report for the quarter ending 31 March 2023 showed production of heavy mineral concentrate (HMC) decreased 18% to 315,000 tonnes (Q1 2022: 384,700t).
Ilmenite production fell 20% to 204,300t (Q1 2022: 256,800t) and primary zircon production decreased 12% to 11,400t (Q1 2022: 12,900t) due mainly to lower HMC availability.
Rutile production decreased 15% to 1,700t (Q1 2022: 2,000t), in line with lower HMC consumption.
Concentrates production decreased 6% to 10,100t (Q1 2022: 10,700t) benefitting from processed stockpiles.
Total shipments of finished products increased 17% to 271,700t (Q1 2022: 231,500t) due to increased trans-shipment capacity and availability of ocean-going vessels.
The company reported lost time injury (LTI) frequency rate of 0.15 per 200,000 hours worked on a 12-month rolling basis (Q1 2022: 0).
A total of 1.3 million LTI-free hours were achieved by the end of March 2023.
ILMENITE MARKET
Managing director Michael Carvill added that production guidance for the year remained unchanged but towards the lower end for ilmenite and rutile.
“The market for ilmenite stabilised in Q1 2023, with evidence of spot price increases in recent weeks supported by recovering Chinese pigment demand.
“While received prices are lower than the peaks achieved in 2022, they nevertheless remain near all-time highs.”