Business Irish

Tuesday 17 January 2017

Kenmare re-opens flood mine

Published 10/11/2010 | 05:00

KENMARE Resources resumed mining yesterday -- a month after a settling pond burst its banks, swamping hundreds of homes and almost certainly killing a four-year-old girl.

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The company said it was "pleased" to reopen its titanium mine in Mozambique, following the tragedy which damaged 388 homes after water, sand and clay flowed through the nearby village of Topuito.

Kenmare has repaired 336 of the houses and the families have been compensated. The company is offering support to the family of the missing girl.

It has repaired the pond wall and must now stockpile heavy mineral concentrate (HMC).

Yesterday, Kenmare told the stock exchange: "In order to allow this HMC to dry, the minerals-separation plant will continue to operate for the next 10 days on a stockpile produced during the commissioning of the plant, following which we will revert to processing fresh HMC."

Shares in Kenmare rose in Dublin yesterday, closing up 12pc at 28c. That gives the company a market value of €673m.

The shares jumped 13pc last week after Bank of America rated the mining company a new buy and said it could be a potential takeover target.

Irish Independent

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