Titanium and zircon miner Kenmare Resources’ latest updates says demand for all of its products remains robust, as ilmenite prices were above its expectations, bolstered by increasing global pigment production.
In a trading update for the six months to the end of June, Kenmare Resources said it remains on track to achieve its 2024 guidance on all stated metrics.
It added that higher ore grades in the second half of the year are expected to support stronger production while shipments are also expected to rise.
Kenmare reported Heavy Mineral Concentrate (HMC) production of 342,600 tonnes in the second quarter of this year, up seven percent on the same time last year, while ilmenite production of 238,600 tonnes in increased by eight percent.
It also said that primary zircon production came to 13,000 tonnes, up 12 percent on the same time last year. Zircon is used to make titanium pigment by the chemicals industry.
Total shipments of finished products of 234,700 tonnes, down 18 percent on the same time last year, mainly due to poor weather conditions and additional operational maintenance which limited shipping time.
It said it saw robust demand for all of its products in the second quarter of 2024, particularly for ilmenite, which is used in the production colour for paints, paper and plastic.
Kenmare noted that spot prices for ilmenite remained relatively stable throughout the first half of the year but its average received price decreased slightly in Q2 compared to Q1 2024, due to some shipments rolling over from Q4 2023, when prices were stronger. Despite this, prices in the first half of the year were above the miner’s expectations.
Chinese pigment producers continued to produce at record levels during the quarter and demand for Kenmare’s ilmenite was also boosted by an increase in operating rates among pigment producers in Europe and the US to meet stronger underlying demand, as well as some restocking of titanium feedstocks.
Speculation surrounding potential duties on Chinese pigment entering the European Union further supported demand and prices for European pigment, it added.
Kenmare said that global supply of titanium feedstocks remains sufficient to meet demand, with new supply from Chinese producers in African countries shipping concentrates to China for processing.
But this was partially offset by the suspension of operations in Sierra Leone and continued Mineral Resource depletion in Kenya.
