Mozambique: Kenmare reports revenue up 83%

The Irish company Kenmare Resources has announced a significant increase in revenue over the last year. In 2011 its revenue rose to 167.5 million US dollars, compared with 91.6 million dollars the year before.

The company’s dredge mine in Moma district, on the coast of the northern Mozambican province of Nampula, produces a heavy mineral concentrate from which titanium and zirconium minerals are extracted.

Last year it shipped 730,400 tonnes of finished products compared with 712,900 during 2010. The breakdown for 2011 included 636,800 tonnes of ilmenite, 43,500 tonnes of zircon and 6,500 tonnes of rutile.

The prices of these minerals have risen sharply on the international market, and as a result the company's revenue increased by 83 per cent.

At the beginning of 2011 the market price for ilmenite was about 100 dollars a tonne. According to Kenmare, the company has entered into contracts to supply the mineral at between 300 and 400 dollars a tonne during the first half of this year.

Ilmenite (iron titanium oxide) and rutile (titanium dioxide) are used to make white pigments for paints, paper and plastic. Titanium can be extracted from these ores and used to manufacture metallic parts where light weight and high strength are needed. Zircon (zirconium silicate) is used for abrasive and insulating purposes.

Kenmare also announced the retirement of Charles Carvill from the Board of Directors. He is replaced as Chairperson by Justin Loasby.

Post published in: Africa News

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