May 20, 2010 - Mineral sands producer Kenmare Resources said that production figures for April showed further growth with zircon production rose 20% to 3,231 tonnes from 2,670 tonnes, while ilmenite production up 14% at 57,307 tonnes from the monthly average of 50,300 tonnes achieved in the first quarter.
The company said these figures were in line with expectations. Production of rutile, a minor co-product representing only 5% of project revenues at full rutile output, has also increased, but at a slow rate than ilmenite and zircon. Kenmare expects rutile production to "improve significantly" in the coming months after new separation equipment was introduced in the circuit.
Kenmare also noted that the market for titanium minerals continued to improve both in terms of higher demand and pricing in the wake of the ongoing economic recovery in both developing and developed economies, while ilmenite stockpiles have been depleted by heavy buying from China, which was looking to capitalize on depressed prices.
"The market for zircon is also firming with significant price increases being announced by major suppliers of zircon. This underpins our strategy of expanding production at Moma and investing to capitalize on more favorable market conditions," the company said in the report.
Kenmare is currently progressing with the engineering design of its 50% output expansion at the Moma titanium minerals mine. An owner's team, which has been appointed and is currently in place in Johannesburg, will supervise the completion of the definitive engineering study, the appointment of an EPCM contractor and the implementation of the expansion project.
Earlier this year the company raised 180 million for the development of Moma.
In January 2009, the company revealed that heavy mineral concentrate production at Moma had reached full design levels, after achieving a 22% quarter-on-quarter increase in production in Q4 2009.
The mine expansion is expected to be completed during 2012, with full production at the expanded design capacity achieved by the end of 2012.
The project has an estimated cost of US$200 million, including a US$18 million contingency. The project is based on an expansion study, which was completed in January 2010. Of the placing proceeds, 133.1 million (US$200 million) is intended to fund the engineering, procurement and construction costs of the expansion project.
The company said these figures were in line with expectations. Production of rutile, a minor co-product representing only 5% of project revenues at full rutile output, has also increased, but at a slow rate than ilmenite and zircon. Kenmare expects rutile production to "improve significantly" in the coming months after new separation equipment was introduced in the circuit.
Kenmare also noted that the market for titanium minerals continued to improve both in terms of higher demand and pricing in the wake of the ongoing economic recovery in both developing and developed economies, while ilmenite stockpiles have been depleted by heavy buying from China, which was looking to capitalize on depressed prices.
"The market for zircon is also firming with significant price increases being announced by major suppliers of zircon. This underpins our strategy of expanding production at Moma and investing to capitalize on more favorable market conditions," the company said in the report.
Kenmare is currently progressing with the engineering design of its 50% output expansion at the Moma titanium minerals mine. An owner's team, which has been appointed and is currently in place in Johannesburg, will supervise the completion of the definitive engineering study, the appointment of an EPCM contractor and the implementation of the expansion project.
Earlier this year the company raised 180 million for the development of Moma.
In January 2009, the company revealed that heavy mineral concentrate production at Moma had reached full design levels, after achieving a 22% quarter-on-quarter increase in production in Q4 2009.
The mine expansion is expected to be completed during 2012, with full production at the expanded design capacity achieved by the end of 2012.
The project has an estimated cost of US$200 million, including a US$18 million contingency. The project is based on an expansion study, which was completed in January 2010. Of the placing proceeds, 133.1 million (US$200 million) is intended to fund the engineering, procurement and construction costs of the expansion project.
