Ilmenite production from London-listed Kenmare Resources’ Moma titanium minerals mine, in northern Mozambique, increased by 25% quarter-on-quarter in the third quarter and returned to an annualised run rate of 1.2-million tonnes on the back of higher mining rates and ore grades, MD Michael Carvill said in an October 13 trading update for the period ended September 30.

Shipments increased by 48% quarter-on-quarter, following the return of the company’s largest transshipment vessel from scheduled maintenance, and Kenmare expects the fourth quarter to be its best of the year in terms of both shipments and production, Carvill said.

“Pricing for our products increased again in quarter three and our order book for quarter four is largely committed. However, pigment demand weakened through the quarter, affected by Chinese and European market conditions.

“We expect demand for titanium feedstocks to moderate in 2023, but we believe the fundamentals of our product markets remain robust,” he noted.

Heavy mineral concentrate (HMC) production for the third quarter was 443 900 t – a 7% increase compared with the third quarter of 2021, owing to a 3% increase in excavated ore volumes and a 2% increase in ore grades.

Ilmenite production was 304 700 t, a 3% decrease compared with the record production in the third quarter of 2021.

Primary zircon production was 17 300 t, a 10% increase compared with the second quarter, benefitting from increased HMC processed and improved recoveries.

Production of all finished products for the full-year is anticipated to be at or around the bottom of Kenmare’s guidance ranges. Total cash operating cost guidance is expected to be at the top of the guidance range, principally owing to inflationary pressures.

Total shipments of finished products was 285 600 t, an 11% decrease compared with the third quarter of 2021, owing to reduced shipping capacity as a result of the Bronagh J transshipment vessel being in dry dock until late August and poor weather conditions.

Higher ilmenite prices were achieved in the period and contracts are in place for the majority of the next quarter’s sales, despite weaker demand for titanium pigment from China and Europe.

Demand for Kenmare’s zircon products remained strong in the quarter and has continued into the fourth quarter, supported by supply constraints, although the global zircon market is showing signs of weakness, particularly in China, the company indicates.

CAPITAL PROJECTS

Work is continuing on the prefeasibility study (PFS) for the Nataka orezone, where wet concentrator plant (WCP) A is expected to begin mining in 2025. The PFS is expected to be completed late this year and a market update will be provided in the first quarter of 2023.

The environmental-impact assessment is said to be progressing well, with the first round of public consultations completed.

As part of the PFS, WCP A is expected to have a desliming circuit installed to more efficiently mine the Nataka orezone.

Some elements of the PFS are significantly advanced, so work towards the definitive feasibility study (DFS) has started in those areas, including on the desliming circuit.

Results for this part of the DFS are expected in first quarter 2023 and, on an accelerated timeline, the installation of the desliming circuit at WCP A could occur in 2024.