Kenmare reports production decline, cuts 2023 ilmenite guidance
Kenmare Resources, one of the leading global producers of titanium minerals and zircon, has reported that its heavy mineral concentrate (HMC) production in Q2 2023 was 318,900 tonnes, a 10% decrease compared to Q2 2022 (353,600 tonnes), due to lower grades and mining rates impacted by power interruptions.
The company’s ilmenite production was 221,300 tonnes in Q2 2023, a 9% decrease compared to Q2 2022 (242,900 tonnes), although better than the 12% reduction in HMC processed, benefitting from the processing of stockpiled magnetic concentrate.
Primary zircon production was 11,600 tonnes, a 15% decrease compared to Q2 2022 (13,600 tonnes), due to the processing of stockpiles in the prior period.
Total shipments of finished products were 285,100 tonnes, a 48% increase compared to Q2 2022 (192,800 tonnes) supported by the drawdown of finished product stockpiles.
Kenmare said it updated its 2023 ilmenite production guidance range to 980,000 – 1,040,000 tonnes (original guidance: 1,050,000 – 1,150,000 tonnes); however no changes were made to guidance for zircon, rutile or concentrates or total cash operating costs.
The company noted that H2 2023 is anticipated to be a “much stronger” period of production, benefitting from increased grades and tonnes mined.
Kenmare also reported that ilmenite prices were stable in Q2 2023, although a weaker titanium pigment market is feeding into lower ilmenite prices in Q3 2023, adding that global macroeconomic conditions are also affecting demand for zircon with spot prices moving below contracted prices.
Kenmare Resources is one of the world’s largest producers of mineral sands products. Kenmare operates the Moma titanium minerals mine in Mozambique. Moma’s production accounts for approximately 7% of global titanium feedstocks and the company supplies to customers operating in more than 15 countries.
