Kenmare Resources, the Dublin-based mining company digging for ilmenite in Mozambique, said yesterday it should be profitable at the end of this year after shipping its first resource in June.

Speaking as the group revealed a net loss of $4.3 million (€3.2 million) for last year, managing director Michael Carvill said Kenmare had made good progress since it started mining operations at its Moma plant in Mozambique last month. He said the group is on track to ship its first delivery in June. From this date the group will generate an income and, provided the ramp up to full production goes to plan, the company should make a profit this year, he said.

Kenmare's initial target is for annual production of 800,000 tonnes of ilmenite, the main titanium-bearing mineral; 56,000 tonnes of zircon, a byproduct that is used to manufacture ceramic tiles; and 21,000 tonnes of rutile, a resource similar to ilmenite but of a higher quality.

As announced by Kenmare last month, production is expected to increase to 1.2 million tonnes of ilmenite plus byproducts by the end of 2009.

The company last month also raised its forecast for total ilmenite resource at the Moma site by 60 per cent to 163 million tonnes, while the inferred ilmenite resource at the nearby Nataka site more than doubled to 110 million tonnes. Mr Carvill said demand for the group's products remains strong as resources around the world run low and demand from countries such as China and India increases.