KENMARE Resources, a mineral sands mining firm operating in Mozambique, said it was hopeful of achieving the mid-range point of its 2018 production guidance of 900,000 to one million tonnes of ilmenite owing to a disappointing first quarter output performance.
The company said in a first quarter update that a planned 180 degree turn at its Wet Concentrator Plant A, and “some unforseen stoppages” saw production for the quarter “below our average for the year”. Kenmare said that in addition to ilmenite, between 65,000 to 72,000 tonnes of zircon would be produced in 2018.
Said Kenmare: “However, we are expecting higher production volumes for the following quarters and still anticipate achieving the mid-range of 2018 guidance”. Ilmenite production decreased by 18% to 211,000 tonnes for the quarter. Zircon production decreased by 9% to 16,900 tonnes.
One the revenue side, Kenmare said that it saw “… steady demand for ilmenite products in Q1 2018 in all regional markets, despite the seasonal slowdown in the pigment industry over the winter months”. And importantly, from a financial perspective, total shipments of finished products were up 4% to 267,200 tonnes for the quarter.
“The outlook for the pigment industry is positive for 2018 as global GDP is expected to grow strongly,” the company said in its statement.
