Monday 18 November 2019

Mining: Kenmare hit by more problems

Mozambique
Mozambique

Dublin-based mining company Kenmare Resources has been hit by flooding at its mine in Mozambique.

Kenmare, which is struggling to get funding, said the flooding caused an interruption in the mine's power supply.

"The power failure occurred when the Meluli River burst its banks, compromising the overhead line.

"A temporary repair was recently carried out in this location following a previous storm and as a result some of the materials necessary for repair are already at site with additional supplies to follow," the company said in a statement.

It said the effects will be mitigated by the fact that it has significant amounts of ilmenite - a mineral mined for titanium production - on hand.

The news is the latest setback for Kenmare which said last month that it is shedding 160 staff, or up to 20pc of workers, at the mine.

The decision came as a deadline for debt talks looms at the end of this month. Kenmare agreed with lenders and Absa Bank to extend a deadline again till March 31.

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