Kenmare Resources said it expects to book a $300 million (€256 million) charge against its Moma mining assets in Mozambique for 2025, after lowering the long-term price assumption for titanium minerals.
The full-year charge is three times the amount taken in the first half of 2025, when the Dublin-based company initially reviewed its long-term projections.
Kenmare also plans to reduce production this year compared to recent years, as it shifts from its historic focus on maximising production to one that emphasises “value over volume”, its chief executive, Tom Hickey, said in a statement on Wednesday.
Still, it sees product shipments rising 15 per cent this year to 1.1 million tonnes. This follows a 13 per cent decline last year.
READ MORE
Kenmare also said that it has still not secured a new production and export royalties deal – or so-called implementation agreement (IA) – with the Mozambique government following the expiry of its previous 20-year arrangement just 13 months ago.
Talks with the authorities have dragged on for more than three years and lost momentum after a presidential election in 2024 triggered months of civil unrest. The terms of the expired accord still stand, pending the conclusion of talks on a new agreement.
Mr Hickey met the president of Mozambique twice in 2025, first in June and then in late November.
“On both occasions the president emphasised Moma’s importance to Mozambique and stressed the government’s intention to renew the IA; however, the ongoing delay and uncertainty remains a significant concern,” the company said. “Kenmare continues to engage with the government, while reserving the right to safeguard its contractual entitlements, up to and including arbitration, if an agreement cannot be reached.”
[ Kenmare’s long mine life meets a short supply of investor patienceOpens in new window ]
The company downgraded its 2025 production guidance for ilmenite – its main product – three times in the final three months of last year. Ilmenite is used in everything from paints and plastics to ceramics and textiles.
The initial downgrades were attributed to delays in commissioning of an upgraded so-called wet concentrator plant (known as WCP A), while the last was blamed on problems managing the slimes generated by dredging titanium-rich sands from mining ponds.
“Commissioning WCP A has continued to advance during the past month, following the challenges,” said Mr Hickey.
“Demand for Kenmare’s products remained stable in 2025 and we have a strong order book for first-quarter 2026. However, continued uncertainty regarding market conditions in the medium term has led us to further reduce our pricing assumptions.”
As the $300 million impairment charge does not affect cash flow, the move will not have any impact on the group’s operations, projects, financing facilities or ability to pay dividends, the chief executive said.
