KMR Kenmare Resources Plc

RNS Number:9582J
Kenmare Resources PLC
3 May 2000


Kenmare Resources plc ("Kenmare" or "the Company")

Purchase of Minerals Separation Plant for Titanium Project


Kenmare has concluded an agreement with BHP to acquire the Minerals Separation
Plant from BHP's former mineral sands project at Beenup in Western Australia,
subject only to the approval of Kenmare shareholders at an extraordinary
general meeting.  

The total consideration for this purchase is US$4.7 million (A$8.0 million) of
which US$1.2 million (A$2.0 million) is to be paid after the plant has been
installed on Kenmare's Moma Mineral Sands Project and has produced 250,000
tonnes of mineral product.  The remaining US$3.5 million (A$6.0 million) is to
be paid on a phased basis between now and 31 December, 2001. Taking into
account dismantling and transport costs, this purchase is expected to create
savings of circa US$20 million for Kenmare. The purchase of the Minerals
Separation Plant is in addition to the Wet Concentrator Plant acquired by
Kenmare in January of this year for US$1.4 million (A$2.5 million).  An
Extraordinary General Meeting of Kenmare's shareholders will be held in the
coming weeks to approve the purchase.

A minerals sands operation consists of a dredge, a wet concentrator plant, a
minerals separation plant and associated infrastructure.  Two of the required
elements have now been secured at low cost. Kenmare now has the ability to
accelerate the development timetable for the Moma Project.

The Moma Titanium Mineral Sands Project is located on the coast of northern
Mozambique.  The resource contains circa 50 million tonnes of ilmenite (a
titanium mineral).  A Pre-Feasibility Study completed in January indicated
robust economics for the mining of this resource.  A Definitive Feasibility
Study is expected to be completed before the end of the year.   The
development timetable is circa 18 months.  Hence, Kenmare hopes to have the
operation fully commissioned and producing in 2002.

Charles Carvill, Chairman of Kenmare said  "I am delighted to be able to
announce this second purchase from BHP.  It is testament to the positive
orientation from both sides in this deal that we have been able to put it
together.  The savings created will make the project economics even more
robust and allow entry to the market before the end of 2002."


For more information:

Michael Carvill / Tony McCluskey
Managing Director / Financial Director
+353-1-671 0411 or +353-87-6740110/ +353-1-671 0411 or +353-87-6740346


END

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