Titanium mineral and zircon producer Kenmare Resources recorded lower-than-anticipated production from its Moma titanium minerals mine, in northern Mozambique, in the quarter ended March 31; however, the mine has not been materially affected by Covid-19 to date and the company continues to ship its product, MD Michael Carvill says.
“However, recent Covid-19 restrictions are having an operational impact and may also result in a delay to the move of Wet Concentrator Plant (WCP) B, which would negatively affect production for 2020.
"Due to the uncertain outlook, we have taken the decision to suspend our 2020 guidance until further notice,” he adds.
Meanwhile, prices for ilmenite, the company’s main product, had increased for the fourth consecutive quarter as demand continued to outstrip supply.
“While there is evidence of near-term disruption to both the supply and demand of titanium feedstocks, inventories in the supply chain remain low and the market is expected to require additional production to meet future demand.
"To provide us with the maximum liquidity and flexibility during this unprecedented period, we have taken the decision to draw our debt facilities. At the end of the first quarter, we had over $100-million of cash and we remain well-resourced to complete the move of Wet Concentrator Plant B,” says Carvill.
There are no known cases of Covid-19 at the mine or in the local communities to date and strict access controls, hygiene protocols and physical distancing measures have been implemented.
Moma produced 248 100 t of heavy mineral concentrate (HMC) in the quarter under review, representing a 31% decrease year-on-year as a result of a 17% anticipated decrease in ore grades and a 12% decrease in excavated ore.
Average monthly HMC production is forecast to increase from the second quarter onwards.
Total shipments of 194 600 t of finished product were made in the quarter.
WCP C is ramping up following first HMC production in late February, and is targeting 500 t/h nameplate capacity in the next quarter.