Kenmare lowers guidance on the back of power challenges

25th November 2022 By: Tasneem Bulbulia - Senior Contributing Editor Online

London-listed Kenmare Resources, which operates the Moma titanium minerals mine, in northern Mozambique, has lowered its 2022 full-year guidance.

“Production of ilmenite, our primary product, was strong in October and we maintained the 1.2-million-tonne-a-year run rate we achieved in quarter three. However, a recent issue in the electricity transmission grid has created unplanned power outages.

“Kenmare is actively working with the State electricity provider, Electricidade de Moçambique, to identify and rectify the problem but the outages have resulted in lower production, and consequently, we are revising our ilmenite guidance,” comments MD Michael Carvill.

As heavy mineral concentrate production has weakened owing to unplanned power outages, Kenmare’s 2022 guidance for ilmenite production has been lowered to between 1.08-million and 1.11-million tonnes, from the 1.13-million to 1.23-million tonnes previously guided.

The guidance for primary zircon is unchanged at 54 400 t to 63 200 t, but rutile production is expected to be between 8 500 t and 9 500 t, compared with the 9 500 t to 11 500 t previously guided.

The guidance for concentrates, which include secondary zircon and mineral sands, is unchanged at 40 300 t to 46 800 t.