Kenmare reported Heavy Mineral Concentrate (HMC) production of 342,600 tons in the second quarter of this year, an increase of 7% compared to the same period last year.

Meanwhile, ilmenite production of 238,600 tons increased by 8%.

Primary production of zircon reached 13,000 tons, an increase of 12% compared to the same period last year.

Total shipments of finished products amounted to 234,700 tons, a drop of 18% compared to the same period last year, mainly due to poor weather conditions and additional operational maintenance that limited shipping times.

The company said it saw robust demand for all its products in the second quarter of 2024, especially for ilmenite, which is used in the production of paints, paper and plastics.

Kenmare noted that ilmenite spot prices remained relatively stable during the first half of the year, but its average price received decreased slightly in Q2 compared to Q1 2024, due to some shipments that rolled over from Q4 2023, when prices were stronger. Despite this, prices in the first half of the year were above the mining company's expectations.

Chinese pigment producers continued to produce at record levels during the quarter and demand for Kenmare's ilmenite was also boosted by an increase in operating rates among pigment producers in Europe and the US to meet stronger underlying demand, as well as some supply of titanium raw materials.

Speculation surrounding possible taxes on Chinese pigments entering the European Union has further supported demand and prices for European pigments, he added.

Kenmare said that the global supply of titanium raw materials remains sufficient to meet demand, with new supplies from Chinese producers in African countries sending concentrates for processing in China.

But this was partially offset by the suspension of operations in Sierra Leone and the continued depletion of mineral resources in Kenya.

Meanwhile, the zircon market remains relatively stable. Demand for zircon sand has improved in Europe, particularly from the ceramics industry. Zircon is used to make titanium pigment by the chemical industry.

Kenmare said it continues to see robust demand for its concentrates in China due to the quality of the products contained.

As previously announced, Kenmare's managing director, Michael Carvill, is due to step down from his executive and board position on August 14, and Kenmare said today that the process to find his successor is nearing completion, adding that it will provide an update ahead of the interim results.

Last month, Kenmare reported a fatality at its Moma Mine after an excavator operator employed by one of its contractors was involved in a fatal incident during the night shift.

He was part of a team of contract employees who were establishing a new dry mining area for the WCP A operations. Investigations found that his death was related to activities outside the normal course of operations and Kenmare said it is cooperating fully with the authorities.

Source: RTÉ