Kenmare Moma Titanium Minerals Mine Cuts Workforce as Mineral Sands Market Weakens

Kenmare Resources

Kenmare Moma Titanium Minerals Mine is facing a sharper restructuring phase as Kenmare Resources moves to cut 15% of the workforce at its Moma complex in Mozambique. The decision reflects weaker mineral sands market conditions, lower projected revenues, and pressure from operational setbacks during 2025.

The company also suspended its 2025 final dividend and booked a $301.1 million impairment charge. Kenmare linked the impairment to an uncertain pricing outlook and updated assumptions around the renewal terms of Moma’s mining licence with Mozambique’s government.

Kenmare Moma Titanium Minerals Mine produces heavy mineral concentrates including ilmenite, zircon, and rutile. These materials supply titanium dioxide pigment, ceramics, welding, and titanium feedstock markets, making Moma an important asset in the global mineral sands chain.

WCP A Commissioning Issues Hit Production and Cash Flow

Kenmare’s 2025 results were heavily affected by the Wet Concentrator Plant A upgrade at Moma. The project drove capital spending higher, while commissioning problems reduced production volumes and limited sales.

The group’s net debt rose six-fold to $159 million at the end of 2025. The increase reflected major investment in the WCP A upgrade at a time when weaker output and lower shipments reduced cash generation.

Earnings before interest, taxes, depreciation, and amortisation fell 63% on the year to $58 million. The decline shows how quickly operational disruption can affect earnings when market conditions are already weak.

Market oversupply also weighed on ilmenite and zircon prices despite steady underlying demand. This left Kenmare exposed to both lower sales volumes and weaker pricing across key mineral sands products.

Licence Renewal and 2026 Recovery Shape Moma Outlook

The renewal of the Moma Implementation Agreement remains a major strategic issue. The agreement, which covers Kenmare’s mineral processing and export activities with Mozambique’s government, expired in 2024.

Kenmare applied to restart the agreement in 2022, and negotiations are still ongoing. The company said talks in mid-February made constructive progress, but final terms remain important for long-term valuation and investor confidence.

There are signs of operational recovery in early 2026. By the end of the first quarter, WCP A was regularly operating at its nameplate ore feed processing capacity of 3,500 t/hr, although some production issues continued.

Shipments are tracking in line with the run-rate needed to meet 2026 guidance. Kenmare has also drawn down finished stockpiles to manage capital, suggesting the company is prioritising liquidity while it stabilises production at Kenmare Moma Titanium Minerals Mine.

The Metalnomist Commentary

Kenmare’s workforce cut shows that mineral sands producers are under pressure from both price weakness and project execution risk. Moma’s recovery will depend on stable WCP A performance, stronger titanium feedstock pricing, and a clearer licence framework in Mozambique.