Kenmare output falls on new plant teething troubles

Kenmare Resources expects production to improve in the second half, after delays to the commissioning and ramp up of a new wet concentrator plant. The Mozambique-focused...

Kenmare Resources expects production to improve in the second half, after delays to the commissioning and ramp up of a new wet concentrator plant. The Mozambique-focused mineral sand miner reported second-quarter ilmenite production of147.2Kt, down by 40% year on year, while heavy mineral concentrate output declined 37% to 225Kt tonnes, due to lower ore grades and reduced mining volumes. Kenmare guided for 2026 ilmenite output of around 800Kt.

Primary zircon production dropped 26% to 9.7Kt. First-half shipments of 555.6Kt, consistent with its full-year guidance of at least 1.Mt, as Kenmare draws down inventories of finished product. Concentrator plant issuesThe miner expect production to improve in the second half, as performance improves at the upgraded Wet Concentrator Plant A."The company had expected to achieve nameplate capacity at WCP A during Q2 2026; however, this has not been consistently delivered to date," Kenmare managing director Tom Hickey said.

"This was due principally to dredging performance, which has resulted in the capacity averaging 2,800 tph in Q2, compared to the design nameplate capacity of 3,500 tph.""Kenmare is working with its suppliers and consultants to resolve these issues, including through ongoing testing, investigations and reporting; improving the lead time of spares; and altering operational techniques." "Downstream modifications have also been implemented, including debottlenecking of the desliming circuit," Hickey said. Soft ilmenite marketHickey noted continued softness in the ilmenite market, despite strong end demand, due to competition from Chinese miners, while the zircon market improved, with higher prices achieved for all zircon products.

"We also saw encouraging demand for our new concentrates product, ZrTi, with full year concentrates guidance materially exceeded in H1," Hickey said. "We have continued to engage constructively with the Government of Mozambique regarding Moma's Implementation Agreement during Q2m," Hickey said.