Michael Carvill - Kenmare Resources

Year: 2012

Category: International

Sector: other (exploration & mining)

Michael Carvill is the Managing Director of Kenmare Resources plc, a Dublin-based mining and exploration company that is a member of the FTSE 250 Index and has listings on the London and Irish Stock Exchanges.

The principal activity of the Group is the operation of the Moma Mine which is located on the north eastern coast of Mozambique.

The Mine contains large deposits of heavy mineral sands which include the titanium minerals, ilmenite and rutile, as well as the zirconium silicate mineral, zircon.

Titanium metal’s unique properties – its high ‘strength to weight’ ratio and high melting point - make it the metal of choice within the aerospace, chemical, electronics, medical and leisure industries; while zircon is used in applications ranging from the production of ceramic tile and sanitary-ware, to the manufacture of refractory products used in the steel and foundry industries.

The demand for titanium pigment is expanding at above trend-line growth rates due to a steep increase in consumption in newly industrialising economies, such as India and China.

Such demand is facilitated by the presence of a dedicated export facility at Moma Mine with full Customs clearance that allows for shipment of parcels ranging from 1,500 tonnes to 50,000 tonnes.

?A 50% expansion of the Moma mine and processing facilities are well underway and due for completion by the end of 2012.

This expansion will enable Kenmare to access the growing market opportunities presented by the deficit of titanium feedstocks and zircon.

Kenmare has 14 staff based in its Dublin office, a regional Sales office in Singapore, and over 900 staff working at the Moma Mine.

In 2011, the Company generated a profit after tax of US$23.7 million (2010: loss US$16.3 million).

Products: The Moma Mine produces heavy minerals used to produce titanium dioxide pigment and titanium metal, as well as the relatively high-value zirconium silicate mineral, zircon.

Titanium dioxide (TiO2) pigment is used in the manufacture of paints, paper, plastic, cosmetics, food additives, ceramics and textiles.

Customers: As a major global producer of ilmenite, rutile and zircon products, Kenmare has customers in 19 countries and growing.

These range from DuPont, Huntsman Tioxide and Sachtleben; and Industrie Bitossi, St.

Gobain and Endeka Ceramics; to VSMPO-AVISMA of Russia, which produces titanium metal for supply to Boeing and Airbus.

1.

What role does CSR play in your business strategy? At Kenmare, we recognise the importance of carrying out our activities in a socially and environmentally responsible manner.

With this in mind, we established the Kenmare Moma Development Association (KMAD) in 2004, for which we have received a number of prestigious awards.

2.

Describe your progression from start-up to current status? Although today, the principal activity of the Group is the operation of the Moma Mine on the north east coast of Mozambique, Kenmare previously operated the Ancuabe Graphite Mine in that country from 1994 to 1999, establishing itself as one of the world’s leading producers of high-quality natural flake graphite.

While that mine is currently on care and maintenance, we are seeking new investors in the project and hold a small number of exploration licences in Ireland.

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