901122E KENMARE HIT BY ELECTRICITY SUPPLY PROBLEMS
London, 25 Nov (AIM) – The Irish mining company Kenmare Resources on Friday reported that production of titanium minerals and zircon at its mine at Moma, on the coast of the northern Mozambican province of Nampula, has been affected by electricity outages.
According to the company’s managing director, Michael Carvill, “production of ilmenite, our primary product, was strong in October 2022 and we maintained the 1.2 million tonne per annum run rate we achieved in the third quarter. However, a recent issue in the electricity transmission grid has created unplanned power outages”.
He added that “Kenmare is actively working with the state electricity provider, Electricidade de Moçambique (EDM), to identify and rectify the problem. But the outages have resulted in lower production, and consequently, we are revising our ilmenite guidance”.
Carvill noted that the fourth quarter “is expected to be our strongest quarter of shipments, which will not be impacted by lower production, and Q4 prices remain strong”. This is due to favourable weather and unrestricted shipping capacity.
Ilmenite and rutile are used to make white pigments for paints, paper, and plastic. Titanium can be extracted from these ores and used to manufacture metallic parts where light weight and high strength are needed. Zircon is used for abrasive and insulating purposes.