Dublin-based exploration company Kenmare Resources has announced that the development of its Mozambique mine is ahead of schedule.

Chief operating officer Dr Chris Gilchrist told shareholders at the company's annual general meeting (agm) yesterday that the Moma Titanium Minerals Project in Mozambique was 89 per cent complete, ahead of a scheduled 85 per cent.

Speaking after the agm, managing director Michael Carvill said production at the mine was expected to begin in January 2007. The mine will initially have a 6 per cent share of worldwide titanium production levels, Mr Carvill said, adding that Kenmare's strategy will be to expand production capacity over time.

The recent recruitment of a full project management team for the Moma mine has allowed Kenmare to redeploy some of its exploration team to other projects. The company was granted three new uranium exploration licences in western Mozambique earlier this week. An exploration programme will begin "in the near future", according to Mr Carvill.

One investor requested information on forward (pre-production) sales at the Moma mine, and was informed by Ian Egan, a director of Kenmare, that it has "presold 70 per cent of the next five years' production". "We continue to sign contracts as we move forward," he added.

Shareholders were told the price of Kenmare's principal product, the titanium mineral Ilmenite, had increased in line with general consumer price index movement. However, a shortage has developed in the zircon market, with prices doubling over the past five years.