Communication - Presse
Kenmare Maintains 2025 Targets but Warns of Global Demand Pressure
In Q3, ended 30 September, Kenmare produced 298,400 tonnes of heavy mineral concentrate (HMC), down 16% from the same period in 2024, reflecting a 19% reduction in ore mined due to a scheduled shutdown of the WCP A concentration unit, partially offset by a 6% improvement in ore quality.
WCP A, the main production unit, is being upgraded and relocated to Nataka, which holds about 70% of Kenmare’s Moma resources, with operations there expected to start in H2 2026 and continue for over 20 years. During the quarter, HMC processing fell 21%, affecting mineral output: ilmenite down 19% (209,000 tonnes), primary zircon down 16% (12,300 tonnes), and rutile down 38% (1,800 tonnes).
Conversely, concentrate production rose 58% to 21,300 tonnes, driven by the first commercial export of ZrTi, a by-product. Shipments fell 25% to 227,400 tonnes, as only 50% of transshipment capacity was available due to five-year maintenance on the Peg vessel, while Bronagh J maintained strong operations. Plans to lease a third transshipment vessel were postponed due to weak short-term demand.
On the international market, Kenmare observed weaker demand for mineral sand products, particularly titanium dioxide pigments, amid slowing construction and housing sectors. In China, inventory reductions over summer temporarily supported prices, but supply still exceeds demand. The zircon market remains soft due to increased acceptance of lower-quality products in China, although demand for high-purity zircon remained stable in China and Europe. Kenmare expects to sell all 2025 production with low year-end inventories.
The company also updated shareholders on the slow renewal of its Implementation Agreement with the Mozambican government, which governs processing and export activities. Although the agreement expired on 21 December 2024, the Ministry of Industry and Commerce confirmed that all rights and benefits remain valid until the extension is finalized. CEO Tom Hickey met with the Minister of Mineral Resources and Energy during Q3 to discuss the matter.