LSE- and ISE-listed titanium minerals and zircon producer Kenmare Resources has reduced its 2025 production guidance after commissioning delays at its upgraded Wet Concentrator Plant (WCP) A resulted in lower-than-expected output.

The company now expects to produce between 870 000 t and 905 000 t of ilmenite in 2025, alongside 8 500 t to 9 500 t of rutile. Previous 2025 guidance had projected higher ilmenite and rutile output before the impact of commissioning delays.

Kenmare said on November 18 that the decision followed slower progress in certain parts of the WCP A commissioning process, particularly on-plant tailings management, which had restricted throughput and required further optimisation work. The company noted that the plant had reached its targeted processing rate at times, but consistency had yet to be achieved.

“Commissioning of WCP A is advancing, following the upgrade work undertaken in September to install two new high-capacity dredges and a new feed preparation module.

“WCP A has achieved nameplate capacity for periods of time and optimisation work is now required to ensure consistency, which we expect to largely deliver by the end of 2025. The upgrade elements of the project will then be substantially complete, bar minor process improvements,” Kenmare COO Ben Baxter said.

The company paused WCP A production in September to disconnect older equipment and install the new dredges and feed preparation module, supported by a tailings storage facility.

According to the company, most of the major new components have been commissioned and are performing to design specifications. Kenmare stated that both dredges were operating steadily after initial automation issues were resolved, and that the new feed preparation system was contributing to improved mineral recoveries.

However, Kenmare said the remaining bottleneck related to tailings management within the plant, which was restricting overall throughput and utilisation. The company expected improvements to largely resolve these issues, although some optimisation work may extend into 2026.

While acknowledging the slower-than-expected ramp-up, Kenmare said market conditions also influenced its updated guidance. The company chose not to compensate for reduced output by increasing dry mining, which would have raised operating costs. It said this approach was supported by weaker product demand and by its ability to meet shipments using both production and existing stockpiles.

“While overall progress is positive, some elements of the commissioning process have taken longer than anticipated, which has impacted production. In light of weaker product market conditions and our ability to meet our shipment commitments through a combination of production and existing inventory, we have prioritised value over volume and chosen not to offset lower production at WCP A with additional dry mining.

“Accordingly, we now update our 2025 production guidance to be in the range of 870 000 t to 905 000 t of ilmenite, plus coproducts, for the year,” Baxter said.

He added that shipments for the year would remain unaffected.

“This change in production is not anticipated to affect sales in 2025. Quarter four is typically a strong period for shipments and our shipping capacity for the remainder of the quarter is expected to be fully utilised.”

WCP A is currently operating in the Namalope orezone but will move to Nataka from late in the second quarter of 2026. Nataka accounts for about 70% of the mine’s mineral resources and is expected to support operations for more than two decades. The transition period is expected to take about 18 months.

Kenmare has maintained its estimate of $341-million for the full upgrade and transition to Nataka, including associated infrastructure. The company said contingency funds remained available within that amount.

About 85% of the total project cost is expected to have been spent and deployed by the end of this year.

Development capital spending for 2025 had been revised to between $170-million and $175-million owing to adjustments in timing between December 2025 and January 2026. The company said the higher 2025 figure would be offset by a corresponding reduction in 2026.

Total cash operating cost guidance remained unchanged at $228-million to $252-million, although lower output means cash costs are now expected to reach between $235/t and $245/t.

Guidance for improvement and sustaining capital remained at $50-million, while expectations for zircon and concentrates production were unchanged owing to the processing of intermediate stockpiles.

Kenmare will announce its fourth quarter production report, including its guidance for 2026, on January 21.