Kenmare revenues soar 83%

Irish mining company Kenmare Resources has reported 'robust' demand for its products in 2011, with revenues up 83% year-on-year.

Revenue rose from $91.6m in 2010 to $167.5m in 2011.

Quarter-on-quarter, the volume of finished products shipped in the fourth quarter rose from 188,200 tonnes to 192,400 tonnes, while production of Ilmenite and zircon was up 13% and 12%, respectively.

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Some 225,600 tonnes of heavy mineral concentrate was produced in the fourth quarter, a 15% increase on the third quarter.

However, while production for the year was already planned to be below nameplate capacity due to interruptions in mining to facilitate the expansion, a further reduction in mining rate was experienced due to a band of clay-rich ore in the mine path.

Partly in response to this development, a supplementary dry mining system has been installed and commissioned to enable the mining operation to keep up the supply of ore.

Going into 2012, Kenmare has secured pricing for new contracts in the range of $300 to $400 per tonne for the first half of the year, the firm said.

The company also announced that following the retirement of Charles Carvill, Justin Loasby will now take over the role of Chairman.

NR