Titanium minerals and zircon producer Kenmare Resources has announced the production of the first heavy mineral concentrate (HMC) from Wet Concentrator Plant C (WCP C).
The floating WCP C development project is at Kenmare’s Moma titanium minerals mine in northern Mozambique.
It is one of the three development projects the company announced as part of its growth strategy to increase production capacity to 1.2 million tonnes per annum (Mtpa) of ilmenite from next year.
In late 2018, the company commissioned its first of the three development projects, a 20% expansion of Wet Concentrator Plant B.
Kenmare noted that the second project was for the development of a third mining operation.
The project remains on track to be completed within its $45m budget, Kenmare said.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below formBy GlobalData
The company said that the third project, which is the relocation of WCP B from Namalope to the high-grade ore zone at Pilivili, is scheduled for the third quarter of this year. The Pilivili zone is located near the company’s Moma mine.
Kenmare Resources managing director Michael Carvill said: “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 1.2Mtpa of ilmenite from 2021.
“These projects are expected to enhance our margins, provide stronger cash flow 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.”
In December last year, Kenmare Resources received Environmental, Social and Health Impact Assessment (ESHIA) approval for a purpose-built road to the Pilivili ore zone.
Construction of this road is currently underway.