Kenmare Resources plc (LSE:KMR, ISE:KMR), one of the world's leading producers of titanium ores and zircon, operates Moma titanium ores ("mines" or "Moma") in northern Mozambique, provides updates on capital project progress and outlook.
Statement from General Manager Michael Carvill:
"The board of directors has further approved the upgrade of Wet Concentrator (" WCP ")A and the transition to the Nataka Kuangqu mine area. The project is expected to provide stable production over the next few decades and maintain Kenmare's low operating costs, with the goal of maintaining its position in the top quarter of the industry.
Production expectations for 2023 are in line with revised guidance provided in July. Guidelines for 2024 will be provided in a fourth quarter 2023 update in mid-January, and production is expected to be broadly in line with the revised guidance for 2023.
It is expected that the price of ilmenite will be lower in 2024 than in 2023. However, Kenmare expects demand to improve in 2024 over time and believes the medium-to long-term fundamentals for all products remain strong." nbsp;
WCP A project update
WCP A will complete mining in Namalope by the end of 2025 and begin the transition to the Nataka Kuangqu mine, which is expected to operate for the remaining economic life of more than 20 years.
The main components of the project include replacing WCP A's two existing dredgers with larger capacity dredgers, adding a desliming circuit, and building a TSF. Budgeting for these elements has now been completed and approved by the Executive Board for implementation. The final feasibility study for the supporting infrastructure is in progress and is expected to be completed in the second quarter of 2024.
WCP B Upgrade Project
The final feasibility study for upgrading WCP B is currently underway and is expected to be completed in the second quarter of 2024. This upgrade will add another 1000 tons/hour of production capacity to the existing 2400 tons/hour, increasing its production capacity by nearly 42%.
The company has decided to postpone the final investment decision on the project while prioritizing WCP A investment. After the final investment decision, the upgrade of WCP B will take approximately 15 months.
