25th Oct 2006 17:11
Kenmare Resources PLC25 October 2006 Kenmare Resources plc ("Kenmare" or "the Company") Kenmare announces short delay in completion of Mineral Separation Plant at the Moma Project and early implementation of capacity expansion. Kenmare has today received notification from the contractor constructing theMoma Titanium Minerals Project of a six week delay to the completion of theMinerals Separation Plant (MSP). Kenmare also announce that it intends toexecute an expansion of the capacity of its Moma Titanium Minerals Project inthe second half of 2007. The capacity expansion, which is now in detailed design, will bring the outputof ilmenite, a titanium mineral and Moma's main product, from a steady stateproduction level of 700,000 tonnes per year to 800,000 tonnes per year. Henceexpected production in 2008 will be 800,000 tonnes of ilmenite, 56,000 tonnes ofzircon and 21,000 tonnes of rutile. The capital involved in this expansion isestimated to be US$6.5 million, which is available from Kenmare's internalresources. In addition, Kenmare also announced that it has today received notification fromthe contractor constructing the Moma Titanium Minerals Project of a six weekdelay to the completion of the MSP. The MSP, which was due to be completed inearly January 2007, will now be complete around mid February. This delay hasbeen caused by the late delivery of materials to the project site. The MomaProject is now 94.5% complete. Construction began in August 2004 with acontract period running until the 5th of January 2007. It has been runningahead of schedule until now. Kenmare's Chairman Charles Carvill said; "We have been signalling for some timethat we intend to expand production at Moma from initial levels. It is verypleasing to see that engineering design has verified our view that this can bedone in an extremely cost effective manner and that we can move forward sorapidly. Also, while it is disappointing to hear news of this short delay indelivery of the MSP, its significance is small seen in context of the overallproject implementation which has gone extremely well. For more information: Kenmare Resources plc Michael Carvill, Managing Director Tel: + 353 1 671 0411 Mob: + 353 87 674 0110 Conduit PR Ltd Leesa Peters Tel: +44 (0) 207 429 6600 Mob: + 44 (0) 781 215 9885 Murray Consultants Ltd Elizabeth Headon Tel: + 353 1 498 0300 Mob: +353 87 989 7234 www.kenmareresources.com 25 October 2006 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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