European News

26, Jan 2012.

Irish-based, Mozambique-focussed mining group, Kenmare Resources, today aid revenues rose 83pc to USD167.5 million last year as it extracted more ore from its Moma titanium project.

In a trading update issued this morning, Kenmare said it shipped 730,400 tonnes of finished products from the mine last year, up from 712,900 in 2010.

It said production rose by 15pc during the final quarter of 2011 to 225,600 tonnes from 195,700 tonnes in the preceding three months.

Ilmenite and zircon production was up by 13 per cent and 12 per cent respectively from the third to the fourth quarter.

The company said demand for all its products was robust during 2011 and prices grew strongly.

The market price for ilmenite at the start of 2011 of around $100 per tonne increased three to four fold throughout the year, driven by tight market conditions.

Last month, Kenmare concluded an agreement with lenders which provided that, in addition to cash already available in the Group, up to USD65 million of operating cashflow may be applied to expansion costs.

Looking forward to the year ahead, Kenmare said it has secured pricing for new contracts in the range of $300 to $400 per tonne for ilmenite for the first half of the year, it said.