Mozambique: Bad weather affects heavy sands output at miner Kenmare Resources

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Mozambique: Bad weather affects heavy sands output at miner Kenmare Resources

6:14 CAT | 02 Mar 2023

FILE - For illustration purposes only. [File photo: Kenmare Resources]

Kenmare Resources, the company that mines heavy sands in Mozambique, announced on Thursday that it will produce half of its projected 2023 ilmenite due to weather-related breakdowns in the north of the country, Lusa reports.

“While Kenmare is working hard to recover lost production of Heavy Mineral Concentrate, production of ilmenite and rutile is now expected to be towards the lower half of the guidance range for 2023,” a company statement distributed on Thursday said.

Kenmare had set a target for 2023 ilmenite production within the range of 1,050,000 to 1,150,000 tonnes, after achieving 1,088,300 tonnes the previous year, according to data advanced in January by the company.

At issue is the impact of breakdowns caused by a lightning “of unusually high intensity” which struck power lines near the mine in early February, cutting two of the powerline conductors , withthe the energy discharged overwhelming the mine’s lightning protection systems and damaging at least two of the power line conductors, as well as other electronic equipment at the mine.

“”This was a highly unusual event, which has not previously occurred in Kenmare’s 15 years of operations. Mining operations were severely disrupted while repairs were carried out,” the company indicates.

“Kenmare is working to establish and mitigate the capital and operating cost impacts of the disruptions,” the note adds.

Kenmare is one of the world’s largest producers of mineral sands, listed on the London and Dublin stock exchanges, with production from Moma in Nampula province, northern Mozambique, accounting for approximately 8% of global titanium raw materials.

The company supplies customers operating in more than 15 countries who use the heavy minerals in paints, plastics and ceramics.

Please, read the full Kenmare Resources Operational Update below:

Kenmare Resources plc

(“Kenmare” or the “Company” or “the Group”)

2 March 2023

Operational Update

Kenmare Resources plc (LSE:KMR, ISE:KMR), one of the leading global producers of titanium minerals and zircon, which operates the Moma Titanium Minerals Mine in northern Mozambique, provides an operational update.

The southern hemisphere rainy season lasts from November to April, bringing widespread electrical storms to northern Mozambique. During these storms, lightning strikes often lead to instability in the power supply to the mine. Kenmare employs a range of protection systems to minimise the impact on operations, including the recently installed Rotary Uninterruptible Power Supply (“RUPS”) system to ensure stable power to the Mineral Separation Plant (“MSP”) and a synchronous condenser (a voltage stabilisation device referred to as a “Dip Doctor”), which alleviates approximately 80% of the dips and spikes in power supply to the mine.

In early February 2023, power lines nearby the mine were subject to a direct lightning strike of unusually high intensity. The severity of the strike cut two of the powerline conductors and the energy discharged overwhelmed the mine’s lightning protection systems. In addition to damaging the power line infrastructure, a large number of variable speed drives and electronic devices at the mine were also damaged, primarily at the three Wet Concentrator Plants (“WCPs”). This was a highly unusual event, which has not previously occurred in Kenmare’s 15 years of operations.

Mining operations were severely disrupted while repairs were carried out. While Kenmare is working hard to recover lost production of Heavy Mineral Concentrate, production of ilmenite and rutile is now expected to be towards the lower half of the guidance range for 2023. Due to a drawdown of intermediate stocks at the MSP, the guidance range for zircon and concentrates remains unchanged. The shipping schedule has also been less affected, as the MSP continued to operate, and existing finished product inventories have been sufficient to allow product shipments to continue.

The Company has undertaken a process of either replacing or repairing the damaged equipment and WCP production capacity has now been restored at close to normal operating levels. The MSP sustained only minor damage, because of additional protection provided by the RUPS system, and returned to operations quickly. The Company is engaging with suppliers to rebuild normal spares inventories of variable speed drives.

Kenmare is working to establish and mitigate the capital and operating cost impacts of the disruptions. Insurance cover is in place and Kenmare is liaising with its insurers to process claims in relation to the lightning strike.

The Company will provide further updates in due course and expects to announce its 2022 Preliminary Results on 22 March 2023.

Source: Lusa / Kenmare Resources