Iluka Resources offers US$780 million for heavy minerals mine in Mozambique

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(2014-09-29) Australia’s Iluka Resources has made an offer of US$780 million to buy Irish company Kenmare Resources, whose main asset is the Moma heavy sands mine in Nampula, Mozambique, the Australian company said recently.

The Moma mine has an expected lifetime of over 100 years and currently produces more than 900 tons of heavy mineral ore, mostly ilmenite and zircon.

“The potential transaction involving Kenmare Resources is compatible with the Iluka Resources mineral sands exploration strategy,” said the statement from Iluka, which noted it was not certain that “any transaction will be made.”

Kenmare Resources last August announced an operating loss of US$17.9 million in the first half, after a profit of US$6.9 million in the same period of 2013.

The losses incurred were, according to Michael Carvill, CEO of the Irish firm, due to prices in the international markets for the minerals extracted by the company falling 23 percent for ilmenite and 7 percent for primary zircon.

Listed on the Australian Stock Exchange, Iluka Resources is the world’s largest producer of zircon and one of the largest producers of titanium dioxide, with mining operations in Australia and the state of Virginia, in the United States of America.

Source: Macauhub

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