KMR Kenmare Resources Plc

 
TIDMKMR 
 
Kenmare Resources plc ("Kenmare" or "the Company") 
 
26 January 2010 
 
                                  Moma Update 
 
Production 
 
During  the fourth quarter  of 2009, production of  heavy mineral concentrate at 
the  Company's Moma Titanium Minerals Mine increased by 22% (from 230,000 tonnes 
to 280,200 tonnes) compared to the previous quarter. Production of heavy mineral 
concentrate is now at full design level. 
 
Processing  of  this  concentrate  resulted  in  a 13% increase in production of 
finished  ilmenite  (from  130,000 tonnes  to  147,100 tonnes)  compared  to the 
previous quarter.  Zircon production in the fourth quarter was at similar levels 
to  the previous quarter at  5,400 tonnes, mainly as a  result of disruptions to 
zircon  production associated  with the  implementation of further metallurgical 
optimisation   projects.    Since   year  end,  additional  equipment  has  been 
commissioned   in   the  zircon  circuit  and  zircon  production  has  improved 
significantly. 
 
Tonnage  of finished products  delivered to customers'  vessels was up 6% in the 
fourth  quarter (from 131,000 tonnes to 139,000 tonnes) compared to the previous 
quarter,  continuing  the  upward  trend  in  production  and shipments shown in 
previous quarters. 
 
In the second half of 2009, production of heavy mineral concentrate increased by 
61% to  510,200 tonnes compared to  the first half  of 2009; ilmenite production 
increased  by  39% to  276,358 tonnes  compared  to  the first half of 2009; and 
tonnes  of finished products shipped increased by 83% to 270,000 tonnes compared 
to the first half of 2009. 
 
The  mineral separation  plant is  now capable  of operating  at the target feed 
rate.  However, the recovery  of minerals in  this plant is  below target. It is 
expected  that existing  metallurgical optimisation  projects should bring these 
recoveries to target levels during the first half of 2010. 
 
The   plant  configuration  is  such  that  rutile  and  zircon  production  are 
interlinked  and hence  it is  expected that  improvement in  rutile output will 
follow  the  optimisation  of  the  zircon  circuits  currently in progress. The 
majority  of this work is  expected to be completed  during the first quarter of 
2010. 
 
Expansion Study 
 
In January 2010, Kenmare completed an Expansion Study, utilising the services of 
a  number  of  independent  consultants,  investigating  plans  for   increasing 
production at its Moma Mine which resulted in options for potential increases in 
production  by  approximately  50% to 1.2 million  tonnes of  ilmenite per annum 
plus  associated co-products. Kenmare has commenced a detailed engineering study 
under  the supervision of Aker Solutions E&C Limited.  This study is expected to 
be completed by the end of the second quarter of 2010. 
 
Under  such plans, Kenmare would expect  to both significantly increase existing 
levels  of  production  and  also  extend  the  life  of  the  mine by expanding 
operations  to the  adjacent Nataka  resource, which  contains in excess of 140 
million  tonnes  of  heavy  mineral  and  is expected to sustain production well 
beyond 2050. 
 
The  Company will continue to evaluate the results of this study and the ongoing 
detailed  Engineering Study when  completed and monitor  the outlook for the end 
markets for its products. 
 
Market Update 
 
The current market outlook is for a continued rebound in pigment demand in 2010 
that  is expected  to lead  to strong  demand for titanium minerals, principally 
driven by increased demand from China and other developing countries. Demand for 
zircon is also expected to rebound strongly in 2010 led by growth in China and a 
recovery  in  Europe.  Kenmare's  supply  and  demand analysis and that of other 
titanium  industry analysts  indicate that  the industry  will experience strong 
demand growth over the next five years. 
 
Kenmare's Chairman, Charles Carvill, said: 
"We  are delighted  with the  continued production  improvements at Moma and the 
improving  market  outlook  for  titanium  minerals  and zircon. We believe that 
Kenmare is well placed to take advantage of these strong markets given its large 
resource base at Moma and its facilities at the mine. With the completion of the 
recent  Expansion Study  the Company  has taken  an important first step towards 
putting  itself in a  position to further  capitalise on this market opportunity 
should it seek to do so." 
 
 
For more information: 
 
Kenmare Resources plc 
Michael Carvill, Managing Director 
Tel: +353 1 671 0411 
Mob: + 353 87 674 0110 
 
Murray Consultants 
Jim Milton/Joe Heron 
Tel: +353 1 498 0300 
Mob: + 353 86 255 8400 
 
Conduit PR Ltd 
Leesa Peters/Charlie Geller 
Tel: +44 207 429 6600 
Mob: +44 781 215 9885 
 
          www.kenmareresources.com <http://www.kenmareresources.com/> 
 
 
[HUG#1377139] 
 

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