By: OrePulse

Kenmare Resources expects about two years of lower-grade ore production as it shifts mining from its Namalope zone to the larger Nataka deposit at its Moma mine in Mozambique, the company's chief operating officer said following its third-quarter production update.

Chief Operating Officer Ben Baxter said ore grades are expected to rise to about 3% once mining reaches Nataka proper, a level the company expects to sustain for decades. Nataka holds about 70% of the mineral resources at Moma, one of the world's largest titanium-feedstock mines.

Kenmare cut its 2026 ilmenite production forecast to between 710,000 and 750,000 tons, down from a previous estimate of about 800,000 tons, as commissioning of its Wet Concentrator Plant A (WCP A) has been slower than planned. The company also trimmed its 2026 shipment estimate by about 50,000 tons to 1.05 million tons, citing late-arriving vessels.

Third-quarter ilmenite output rose to about 234,000 tons, an increase of almost 60% from the second quarter, as WCP A's performance improved. The plant operated at about 3,100 tons an hour, representing 49% of its nameplate capacity; Kenmare said it expects the plant to reach its full nameplate capacity of 3,500 tons an hour in the first half of 2027.

The company is also studying a lower-capital "Selective Mining Operations" approach for Congoloni, a nearby deposit it described as holding high-quality ilmenite and zircon.

The production update comes as Kenmare weighs a takeover proposal from International Resources Holdings (IRH), an Abu Dhabi-based company, which Kenmare disclosed on October 6. Kenmare's shares have risen 29% since that disclosure.

Kenmare also said it remains hopeful of resolving its long-running Implementation Agreement with the government of Mozambique, under whose terms the company has continued to operate since the existing agreement's nominal expiration at the end of 2024. Kenmare managing director Tom Hickey said the company is "pretty much at the stage where we have a final position," though it has not yet received official notification of approval from the Mozambican government.