Kenmare lifts production as heavy minerals demand surge

Nov. 17, 2010 - Irish mining company Kenmare Resources on Wednesday reported that it had increased production of heavy minerals concentrate in its third quarter by 31% to 297 000 t, compared with the previous quarter.
The LSE-listed company boosted ilmenite production by 22% to 206 000 t, zircon output by 25% to 11 000 t, and increased its rutile production by 158% to 2 000 t, compared with the previous quarter.
Kenmare said that demand for its main product, ilmenite, remained robust and was driven by growing Chinese demand and recovering demand by European pigment producers.
The miner was in the process of negotiating a number of new contracts for 2011 and expected to achieve significant price increases for uncommitted ilmenite sales over 2010 levels.
Meanwhile, titanium feedstocks were also in tight supply and Kenmare said that it expected the situation to become more acute in 2011 as end-use demand continued to grow and limited new supply entered the market. "A number of titanium feedstock producers closed or permanently curtailed production during the global economic crisis in 2009 and the industry has been unprepared by the speed and strength of the recovery in the pigment market. A recovery in the titanium metal market, which has just recently started, and increasing demand for feedstocks for the welding electrode market, are also adding to market demand pressures."
Kenmare forecasts a further rise in zircon prices in 2011, owing to limited supply and increasing global demand mainly driven by China. "The market remains in tight supply with both producers and end-users holding minimal inventories. Zircon prices have already increased by circa 30% during 2010 over year-end 2009 levels."
Kenmare's net debt position at September 30, 2010 was $80,5-million.