Kenmare Resources in €95m bid to boost mine production
Irish-owned titanium miner Kenmare Resources is relocating its wet concentrator plant B to the highest grade ore zone at its Moma mine in Mozambique.
The Pilivili ore zone is expected to contribute an additional 130,000 tonnes of heavy mineral concentrate production per year.
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The move of wet concentrator plant 'B' is the last of three internal growth projects required to increase production to 1.2 million tonnes a year. "The news maintains the progress that the group has made over the last few years," said analyst Job Langbroek from. Davy Stockbrokers.
"At the same time, the ilmenite market backdrop looks stable, providing a steady backdrop to complete these [three] self-funded operations - illustrating the strength of the group's current financial position," Mr Langbroek added.
The relocation will cost an estimated $106m (€95m), which the group expects to fund from its balance sheet and internally generated cash flow. "Kenmare is on track to deliver a 20pc increase in production at Moma on a sustainable basis from 2021 and the move of wet concentrator plant B to Pilivili will be the final step in achieving this goal," said Kenmare managing director Michael Carvill.
The move, which is expected to take place over a three-month period next year, follows a definitive feasibility study by the group.
Pilivili will be mined over eight years and no further re-location of the concentrator plant is expected. Meanwhile, Providence Resources and its partners on Frontier Exploration Licence 3/04, which is located off the south west coast of Ireland, are to defer the acquisition of the planned 2019 Dunquin South exploration well site survey.
The Irish exploration group said it would provide further updates on the revised scheduling of the survey "as and when appropriate."
Shares in Providence Resources were down 14.3pc in afternoon trading yesterday.