Iluka Resources ( OTCPK:ILKAF ) has a substantial mineral sands operation. This piece, this here, is not about that. This is about something much more short term, the excitement about the rare earths work they'reTim Worstall is a wholesaler of rare earth metals and one of the global experts in the metal scandium. He is also a Fellow at the Adam Smith Inst in London and an writer for a number of media outlets, including The Times (London), Telegraph, The Register and even, very occasionally indeed, for the W ...

Core Viewpoint - Kenmare Resources plc reported stable demand for its products in Q2 2025, with ilmenite prices remaining stable, but the company has lowered its long-term pricing assumptions due to market uncertainties, leading to an expected impairment charge of up to $125 million in H1 2025, which will be a non-cash charge and will not affect operations or dividends [4][40]. Production Overview - Heavy Mineral Concentrate (HMC) production reached 358,300 tonnes in Q2 2025, a 5% increase year-on-year, driven by a 16% increase in ore grades despite a 12% decrease in excavated ore volumes [8][11]. - Ilmenite production was 245,400 tonnes, up 3% year-on-year, while primary zircon production increased by 1% to 13,100 tonnes [8][12]. - Total shipments of finished products were 181,800 tonnes, down 23% year-on-year, primarily due to adverse weather and maintenance of transshipment vessels [8][15]. Operational Update - The company achieved zero Lost Time Injuries (LTIs) in H1 2025, with a Lost Time Injury Frequency Rate (LTIFR) of 0.03 per 200,000 hours worked, an improvement from 0.09 in the previous year [8][10]. - Kenmare is on track to meet its 2025 production and cost guidance, expecting higher production in H2 2025 supported by increased excavated ore volumes [8][14]. Capital Projects - The Wet Concentrator Plant A upgrade project is progressing as planned, with an estimated capital cost of $341 million, and commissioning is expected to begin in Q3 2025 [8][20]. - The company has initiated a Selective Mining Operation (SMO) with a targeted run rate of 300 tonnes per hour, and a second unit is planned for commissioning in H1 2026 [23][25]. Market Conditions - Demand for titanium feedstocks remains robust, with stable ilmenite pricing, while zircon and rutile prices have continued to decline [26][27]. - The zircon market is subdued due to weak demand, particularly in China's construction sector, although demand for high-grade zircon remains strong [30][31]. Corporate Developments - Kenmare has been included in the FTSE4Good Index Series, reflecting strong Environmental, Social, and Governance (ESG) practices [35][36]. - The company terminated discussions with Oryx Global Partners regarding an offer, as the revised pricing was deemed to undervalue Kenmare's business [38][39]. - James McCullough was appointed as the new Chief Financial Officer on 1 May 2025, bringing extensive experience from Rio Tinto Plc [37].

Core Viewpoint - Kenmare Resources plc has published its Report on Payments to Governments for the financial year ended 31 December 2024, detailing payments made to the Government of Mozambique, with total payments amounting to $20,323,000, which includes taxes, royalties, and fees [3][4][22]. Company Overview - Kenmare Resources plc is a leading global producer of titanium minerals and zircon, operating the Moma Titanium Minerals Mine in northern Mozambique, which accounts for approximately 6% of global titanium feedstocks [3][6]. - The company is incorporated in Ireland and has listings on the London Stock Exchange and Euronext Dublin [6][25]. Report Scope and Compliance - The report complies with the Transparency Regulations and the Companies Act, detailing payments related to the exploration, development, and extraction of minerals [5][9]. - Payments are disclosed on a cash basis and are categorized into royalties, taxes, and fees, among others [12][14]. Financial Summary - Total payments to the Government of Mozambique for 2024 include: - Taxes: $9,921,000 - Royalties: $10,087,000 - Fees: $315,000 - Total: $20,323,000 [22]. - The mining operations are conducted by wholly-owned subsidiaries, Kenmare Moma Mining (Mauritius) Limited and Kenmare Moma Processing (Mauritius) Limited, which account for 100% of the Group's turnover [7][10]. Payment Details - The Group is subject to a mining royalty of 3% based on Heavy Mineral Concentrate (HMC) sold, and a revenue royalty of 1% on revenue recognized by the processing subsidiary [14][15]. - The corporation tax rate applicable to the Mozambique branch is 35% on taxable profits [15]. Community and Infrastructure Contributions - Payments for infrastructure improvements and social investments are excluded from the report, focusing instead on direct payments to the government [17].