The company's principal asset is the Moma Titanium Minerals Mine, located in Moma, Nampula Province, Mozambique. It has been in production since late 2007. In 2021 the Mine produced 1,228,500 tonnes of finished products, up 46% compared to 2020. This included 1,119,400 tonnes of ilmenite, up 48% compared to 2020. Kenmare is targeting ilmenite production (plus associated co-products) of approximately 1.2 million tonnes per annum on a sustainable basis.
The Mine produces 8% of the world's titanium feedstocks (ilmenite and rutile), which are predominantly used in the production of titanium dioxide pigment favoured for its whiteness and opacity in paper, paint and plastics.
The Moma Mine also produces zircon, an important raw material in the manufacture of ceramics, and mineral sands concentrates, which is used in various clean technology applications.
The Mine is estimated to have a mine life of over 100 years at current production levels, with approximately 6.3 billion tonnes of Mineral Resources in various ore zones. The current mine plan extends beyond 2040.
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The Mine has a low environmental impact, with over 90% of its power requirement in 2021 sourced from a renewable source (hydropower). No toxic chemicals are used in Moma's mining or processing operations and Kenmare employs a progressive rehabilitation strategy in order to return mined land to local communities in a timely manner.
At the end of 2021, the Mine employed over 1,500 people and 97% were Mozambican. In 2021 the Mine received a five star NOSA accreditation for health, safety and environmental management for the sixth consecutive year.
The total Proved and Probable Ore Reserves under the Namalope, Pilivili, and Nataka mining concession are estimated as at 31 December 2021 at 1,534 million tonnes, grading 2.7% ilmenite, 0.18% zircon and 0.059% rutile, containing 41 million tonnes of ilmenite, 2.7 million tonnes of zircon and 0.90 million tonnes of rutile. The total Mineral Resource (excluding Ore Reserves) held by the Group under a combination of exploration licences and mining concessions is estimated as at 31 December 2021 at 6.3 billion tonnes, grading 2.4% ilmenite, 0.16% zircon and 0.052% rutile, containing 149 million tonnes of ilmenite, 10 million tonnes of zircon and 3.3 million tonnes of rutile.
Products
The Moma Mine's primary product is ilmenite (accounting for 79% of revenue in 2021), with the associated co-products of primary zircon (15% of revenue), concentrates including mineral sands concentrate (5% of revenue), and rutile (1% of revenue).
Kenmare is the world's fourth largest producer of titanium feedstocks (ilmenite and rutile), which are primarily used to make titanium dioxide (Ti02) pigment. TiO2 pigment impart whiteness and opacity in the manufacture of paper, paint, plastics and multiple other ‘quality of life’ items like inks, pharmaceuticals, and cosmetics. The company is responsible for 8% of global supply of titanium feedstocks at current production levels.
The Moma Mine also produces zircon, which is an important raw material for the ceramics industry, and mineral sands concentrate, which is used in various clean technology applications.
Ilmenite is a common accessory mineral in igneous rocks, sediments, and sedimentary rocks in many parts of the world. Apollo astronauts found abundant ilmenite in lunar rocks and the lunar regolith. Ilmenite is a black iron-titanium oxide with a chemical composition of FeTiO3. Ilmenite is the primary ore of titanium, a metal needed to make a variety of high-performance alloys. Most of the ilmenite mined worldwide is used to manufacture titanium dioxide, TiO2, an important pigment, whiting, and polishing abrasive.
Zircon is a zirconium silicate mineral with a chemical composition of ZrSiO4. It is common throughout the world as a minor constituent of igneous, metamorphic, and sedimentary rocks. Zircon is present in most soils and clastic sediments. Zircon-rich sediments are mined and the recovered zircon is used to produce zirconium metal and zirconium dioxide. These are used in a wide variety of manufactured products and industrial processes.
Rutile is a titanium oxide mineral that is most commonly found in granites, pegmatites, and metamorphic rocks. It is also found in sands derived from the weathering of these rocks. Rutile also forms as slender crystals within quartz and micas. It is a common mineral in the alluvial sands that are dredged for magnetite and ilmenite. Rutile is used as a coating on welding rods. It is also used as an ore of titanium, a metal used where light weight and high strength are needed. Some rutile is used in the production of pigments for paints.
In Q4 2018 Kenmare introduced a new product stream called mineral sands concentrate, which contains monazite. Monazite is a rare phosphate mineral with a chemical composition of (Ce,La,Nd,Th)(PO4,SiO4). It usually occurs in small isolated grains, as an accessory mineral in igneous and metamorphic rocks such as granite, pegmatite, schist, and gneiss. These grains are resistant to weathering and become concentrated in soils and sediments downslope from the host rock. When in high enough concentrations, they are mined for their rare earth and thorium content. Monazite is an important source of thorium, cerium, and other rare elements. Often mined as a byproduct from heavy mineral deposits. Kenmare despatched its first shipment of mineral sands concentrate from the Moma Mine in Q2 2019.
Markets
Kenmare's products are raw materials used in the production of many consumer products. Demand for Kenmare's products is heavily linked to the performance of the global economy. Ti02 pigment is a ‘quality of life’ item and consumption of it grows as income levels increase. Kenmare also expects to benefit from emerging supply constraints. The Company believes that current product prices are not high enough to incentivise new greenfield projects to be built, which means that over time, demand for titanium feedstocks will exceed the available supply. This is expected to support product prices.
Kenmare's sales profile is geographically diverse with the Company selling its products to customers operating in more than 15 countries globally. In 2021, 49% of the company's revenue was attributable to Chinese markets, 18% to European markets, 10% to US markets and 23% to the rest of the world.
