Kenmare shares rise after fire damage fixed at mine
Dublin-based mining firm Kenmare Resources has returned part of its operation on Mozambique to full production capacity after completing repairs to machinery that had been damaged by fire. Shares rose as much as 5.6pc to 24.5 cent.
Kenmare operates a large ilmenite mine at Moma in the east African country. Ilmenite is processed to make titanium dioxide, which is used in the manufacture of products such as paint and plastic.
Some equipment was damaged last month during a fire at part of the mine that broke out after routine welding was completed.
That slowed supply of so-called heavy mineral concentrate. While one part of the equipment has been fully repaired, repairs to the second will be completed within the next day.
The company also warned the power outages will continue, Davy Stockbrokers said.
Kenmare, whose shares have slumped recently due in part to concerns about demand for its output, is valued on the Dublin stock market at €634m.
A year ago it was valued at over €1bn.
Output from the Moma mine -- much of which ends up being used in China -- is classed as 'mineral sands'.
This week, global investment bank Goldman Sachs said the outlook for mineral sands "remains challenging".
"Demand growth should accelerate in 2014 as the titanium feedstocks market emerges from a destocking cycle but the need for on-going supply discipline will remain," the firm said.