Boeing’s decision to stop buying titanium from Russia could benefit Irish mining company Kenmare Resources, whose Moma mine in Mozambique is one of the world’s largest titanium mineral deposits.
t produces ilmenite and rutile which are ultimately used to produce high-performance metals, as well as pigments for paints, foods and paper.
This week, Boeing said it was suspending the purchase of titanium from Russia.
The American plane maker says it has a “significant” metal inventory, which is prized in the aerospace sector for its strength-to-weight ratio and compatibility with next-generation jets. the latest carbon fiber long-distance passenger.
The head of Russia’s state-controlled VSMPO-AVISMA criticized Boeing’s decision to suspend the contract, which was renewed four months ago at the Dubai Airshow, where Boeing pledged to keep the Russian company as a supplier. his biggest titan.
Aerospace companies around the world have been increasing their titanium stocks and shifting to diversify their sources of supply since the 2014 Crimea crisis.
Kenmare Resources’ Moma mine has ilmenite reserves expected to last for more than a century.
Shares of the company rose 4.5 percent in London on Tuesday, valuing the miner at 510 million euros.
They are currently trading at a one-month high, but are still about 10pc below the 52-week high hit in early January.
The company publishes its 2021 results later this month.
In an update in January, chief executive Michael Carvill said last year was a record year for the group in terms of volume and sales.
At the time, Mr Carvill said the outlook for 2022 “remains positive”.
Moma generated more than 1.1 million tonnes of ilmenite last year, 48pc higher than 2020. Rutile production also increased 48pc, at 8,900 tonnes.
In France, Airbus said it continues to source titanium from Russia and other countries. It said it is also obtaining titanium indirectly through tier one suppliers, all of which are subject to sanctions.
The European aircraft maker says it depends on Russia for half of its overall titanium needs, while VSMPO-AVISMA supplies a third of Boeing’s requirements. It has said that its overall ability to increase jet production depends on the availability of raw materials, including titanium.
Additional report Reuters
https://www.independent.ie/business/world/kenmare-resources-could-benefit-from-boeing-metal-move-as-plane-maker-dumps-russian-suppliers-41425875.html Kenmare Resources could benefit from Boeing’s metal move as plane maker dumps Russian suppliers