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Kenmare aims to double titanium production at Moma, Mozambique

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Kenmare Resources (AIM: KMR) aims to double production at its Moma titanium project in Mozambique. Kenmare MD Michael Carvill told the Reuters news agency that the company is currently working towards expanding on the 700,000 tonnes of ilmenite expected to be produced from Moma this year.

According to Carvil, the titanium market is facing a global supply shortage from 2011 onwards, and Kenmare intends to ramp-up production in Mozambique to meet plug the gap. "I don't see why, as demand increases, we don't expand and expand and expand ... Significantly, we hope to certainly produce more than twice of what we are presently producing", Carvil commented.

Kenmare’s MD said the company is working on a new expansion study which will be reported shortly. According to Carvil the company is seeing reasonably strong growth in demand and many mines are nearing the end of their life, as such there will be a significant challenge to titanium supply which will in turn drive prices. "We see prices just inching up in 2010 but through 2011/2012 we see a shortage of supply developing", Carvil said, "Demand is closely tied into world economic growth ... we're seeing it in customer enquiries now."

Moma crossed the operational breakeven line in May. It is exploiting one of the largest mineral sands projects in the world.  Once in top gear, Moma should deliver 800,000 tonnes per annum of ilmenite, 47,000 tpa of zircon and 18,000 tpa of rutile - equivalent to approximately 7 percent of world supply.

Quick facts: Kenmare Resources plc

Price: 255 GBX

LSE:KMR
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Market Cap: £279.63 m
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