KMR Kenmare Resources Plc

RNS Number:0559L
Kenmare Resources PLC
25 October 2006

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



 Kenmare announces short delay in completion of Mineral Separation Plant at the
          Moma Project and early implementation of capacity expansion.



Kenmare has today received notification from the contractor constructing the
Moma Titanium Minerals Project of a six week delay to the completion of the
Minerals Separation Plant (MSP).  Kenmare also announce that it intends to
execute an expansion of the capacity of its Moma Titanium Minerals Project in
the second half of 2007.



The capacity expansion, which is now in detailed design, will bring the output
of ilmenite, a titanium mineral and Moma's main product, from a steady state
production level of 700,000 tonnes per year to 800,000 tonnes per year.  Hence
expected production in 2008 will be 800,000 tonnes of ilmenite, 56,000 tonnes of
zircon and 21,000 tonnes of rutile.  The capital involved in this expansion is
estimated to be US$6.5 million, which is available from Kenmare's internal
resources.



In addition, Kenmare also announced that it has today received notification from
the contractor constructing the Moma Titanium Minerals Project of a six week
delay to the completion of the MSP.  The MSP, which was due to be completed in
early January 2007, will now be complete around mid February.  This delay has
been caused by the late delivery of materials to the project site. The Moma
Project is now 94.5% complete.  Construction began in August 2004 with a
contract period running until the 5th of January 2007.  It has been running
ahead of schedule until now.



Kenmare's Chairman Charles Carvill said; "We have been signalling for some time
that we intend to expand production at Moma from initial levels.  It is very
pleasing to see that engineering design has verified our view that this can be
done in an extremely cost effective manner and that we can move forward so
rapidly.  Also, while it is disappointing to hear news of this short delay in
delivery of the MSP, its significance is small seen in context of the overall
project implementation which has gone extremely well.



For more information:



Kenmare Resources plc

Michael Carvill, Managing Director

Tel: + 353 1 671 0411

Mob:  + 353 87 674 0110



Conduit PR Ltd

Leesa Peters

Tel:  +44 (0) 207 429 6600

Mob: + 44 (0) 781 215 9885

Murray Consultants Ltd

Elizabeth Headon

Tel: + 353 1 498 0300

Mob:     +353 87 989 7234





www.kenmareresources.com







25 October 2006


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