A lightning strike hits production momentum at Irish mining firm Kenmare Resources

Kenmare Resources managing director Michael Carvill. Picture: Jason Clarke

Irish mining firm Kenmare Resources experienced a “challenging” start to 2023 as a severe lightning strike disrupted company operations and productions during the first quarter.

Kenmare Resources produced 204,300 tonnes of ilmenite in Q1, down 20% year-on-year and 28% sequentially due to the impact of the lightning strike.

However, the company recorded strong shipments of finished products in the same period despite this obstacle and stubbornly high input prices.

“While received prices are lower than the peaks achieved in 2022, they nevertheless remain near all-time highs,” said Michael Carvill, managing director of Kenmare Resources.

Kenmare Resources, which is one of the world’s leading producers of titanium feedstocks via its Moma mine in Mozamboque, said total shipments of finished products increased 17% to 271,700 tonnes compared to the same quarter a year ago. This growth was driven by increased transhipment capacity and more availability of ocean-going vessels.

Additional hurdles that have impacted the company this year included the weak global pigment market and higher interest rates hitting underlying demand.

Kenmare Resources said its production guidance for the year remains unchanged, albeit towards the bottom end of guidance for ilmenite and rutile.

The market for ilmenite stabilised in the March quarter, following spot price increases in recent weeks supported by recovering Chinese pigment demand.

Demand for its ilmenite products allowed Kenmare Resources to implement a ninth consecutive price increase in Q4.

A further large ilmenite shipment, partially-loaded at the end of the quarter, will be included in Q2 figures, the company said.