Exploration group Kenmare Resources expects to start mining titanium from its plant in Mozambique six weeks earlier than expected after construction at the site was ahead of schedule.

At the end of June, 28 per cent of the Moma Titanium Mineral Sands Project was complete, compared with the 23 per cent the company had originally forecast for completion by that date, Chris Gilchrist, Kenmare's chief operating officer, said yesterday at the group's agm.

The site is now expected to be finished at the end of September 2006, and the first material should be extracted during the final three months of the year, said Michael Carvill, the group's managing director.

Once fully up and running, the Moma plant will produce more than 700,000 tonnes of ilmenite each year, which will be shipped to northern Europe and North America, where it will be used in the production of paints, plastics and paper.

Kenmare is seeking to take advantage of a recent increase in demand for titanium pigment, which stems from an increase in use in parts of China and India as well as a decline in reserves.

The market for titanium pigment is expected to grow at about 3 per cent a year going forward, following a surge of about 5 per cent annual growth over the past few years, according to Mr Carvill.

The Moma site will also produce 17,000 tonnes of rutile and 60,000 tonnes of zircon each year.

Kenmare, which last year raised £53 million (€76.7 million) to fund the site's development, has sufficient finances to complete the construction, according to Mr Carvill. The company, which had no sales, made a profit of $36,555 last year as a result of currency fluctuations.

Mr Carvill said it will start making a "proper" profit within the first year of extraction beginning.

Kenmare said yesterday it signed another five-year marketing agreement with a major consumer for anticipated production from the Moma plant.

Shares of Kenmare ended the day unchanged at 43 cents.