Oman-backed Irish mining firm posts strong growth

TURNAROUND: Upbeat performance follows $100m equity injection by SGRF last year -

Conrad Prabhu -

MUSCAT, OCT 13  -

International mining firm Kenmare Resources, in which the State General Reserve Fund (SGRF) — a sovereign wealth fund of the Sultanate of Oman — is the largest shareholder, has reported strong production figures for Q3 2017 buoyed by near record output levels of ilmenite (a key source of titanium.

Ireland-registered Kenmare Resources is a leading global producer of titanium minerals and zircon harnessed from its flagship Moma Mine in Mozambique. Heavy mineral deposits in the mine are a source of titanium minerals ilmenite and rutile, as well as the zirconium silicate mineral, zircon, which presently enjoy strong demand growth in international markets.

Ilmenite and rutile are used in the production of titanium dioxide pigment, which has high opacity and brilliant whiteness and is principally used in the manufacture of paints, paper and plastics. Titanium metal, which is also a key byproduct, is a light, strong metal used in aerospace and other high-technology applications. Zircon, on the other hand, goes into the production of opacifiers for the ceramics industry.

Kenmare’s upbeat performance comes in the wake of a $100 million equity injection made by SGRF last year that helped reverse the declining fortunes of the debt-saddled miner. The Omani wealth fund is currently a 29.2 per cent shareholder with a presence on Kenmare’s board.

“Q3 2017 represented another record quarter for Kenmare’s ilmenite production, keeping the Company on track for the highest ever annual production, which will be within the guidance range. In the product market, Chinese demand for ilmenite is improving again, following a slower period in the last couple of months. The zircon market has performed strongly, with further price increases in H2 2017,” said Michael Carvill, Managing Director, Kenmare Resources, in a statement.

One highpoint of Kenmare’s Q3 performance was the production of ilmenite, which soared to a quarterly record of 257,500 tonnes. “Production of ilmenite is on track for record annual production, within the guided range,” the company stated.

Dublin based Kenmare Resources plc is listed on the London Stock Exchange and also has a secondary listing on the Irish Stock Exchange. The company is recognised as a major supplier of mineral sand products to a global customer base operating in over 15 countries and including some of the largest end users of these products.