KENMARE Resources confirmed on Tuesday it had received a takeover proposal from International Resources Holdings (IRH), an Abu Dhabi company.
“The board of Kenmare Resources notes recent press speculation and confirms that it has received a non-binding proposal from IRH regarding a possible cash offer for the entire issued and to be issued share capital of Kenmare,” the company said in a statement.
Discussions were “ongoing”, it added. Shares in Kenmare gained 29% in early London trade, valuing the mineral sands miner at about £208m.
Under Irish takeover regulations, IRH has until November 17 to say whether it intends to make a bid for Dublin-headquartered Kenmare. “A further statement will be made as and when appropriate,” said Kenmare.
Kenmare shipped 947,900 tons of heavy mineral concentrates in 2025 from its Moma mine in northern Mozambique. The minerals, such as ilmenite, are used in the manufacture of paint pigments and ceramics. Shipments for 2026 are estimated at about 1.1 million tons.
IRH has spent about $1.5bn acquiring mining businesses in Africa. In 2024, it finalised the acquisition of a 51% stake in Zambia’s Mopani Copper Mines. It followed this up with the purchase of a stake in Bisie, a tin mine in the Democratic Republic of Congo. Established in 2022, IRH operates as a subsidiary of the International Holding Company, described as one of the most valuable conglomerates in the United Arab Emirates.
Kenmare has run into difficulties in the last two years owing to a combination of a project delay and the failure to secure an extension of an ‘Implementation Agreement’ with the Mozambique government. The IA sets down a number of processing and export regulations, specifically affecting items such as royalties and tax exemptions.
In an effort to expedite the IA extension, Kenmare offered certain modifications, such as an increase in the royalty to 2.5% from 1% currently, and a withholding tax equivalent to $4m a year in benefits (or a 0.5% royalty increase). But discussions with the government have been slow. A worst-case scenario in failing to get a new IA is that Moma would lose its industrial free zone status, worth between $25m and $40m a year in revenue.
In March, Kenmare suspended the final dividend and unveiled plans to retrench employees amid weak prices and following lower-than-planned production.
It reported a $23.7m adjusted loss for the 12 months ended December 31 (2024: $64.9m profit) owing to a 6% decline in the average realised price of its mineral sales and as peak funding ($156m) for its $341m WCP A upgrade fell due.