Monday 26 September 2016

Kenmare mining production hit by storms and strikes

Paul O'Donoghue

Published 27/07/2015 | 07:54

Michael Carvill, Managing Director of Kenmare Resources PLC.Photo: Tony Gavin 11/4/07
Michael Carvill, Managing Director of Kenmare Resources PLC.Photo: Tony Gavin 11/4/07

Irish mining company Kenmare Resources saw production fall sharply in the first half of its financial year as strike action and nearly two months of storms took their toll.

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Ilmenite production in the first half of the financial year decreased by 27pc to 324,100 tonnes compared to 445,600 tonnes in the corresponding period last year while HMC production fell by 25pc, dropping from just over 600,000  tonnes to 454,500 tonnes.

Zircon production increased slightly, rising from 21,400 to 23,800, while total shipments of finished products in the first half of the financial year increased by 3pc to 412,000 tonnes from just under 400,000 tonnes.

A statement from the company said: “Production was constrained by 57 days of storm related grid power outages in Q1 and sporadic power outages in Q2, as a result of remedial work to the power line.

It added that it expects power stability to improve significantly following the installation of new power infrastructure in the coming months.

Kenmare managing director Michael Carvil said that production was “severely impacted” by weather related power outages in the company’s first financial quarter. He added that although production improved in the second quarter, it remained hampered by “remedial work to the power line and unofficial industrial action in June, reducing operating hours for the plant”.

“The outlook for production in [the second half of the financial year] looks stronger as the national power utility commissions equipment that will increase grid power capacity and stability,” he said.

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