Modern Mining March 2015

MINING News

A view of the Moma TitaniumMinerals Mine in northern Mozambique. The mine will be reducing its workforce by between 15 and 20 % (photo: Kenmare Resources).

Kenmare Resources to cut workforce at its Moma mine has resulted in the identification of areas where further efficiencies can be achieved. Unfortunately this will result in what the company calls a ‘focused reduction of employees’ at the mine.

Ireland’s Kenmare Resources plc, one of the leading global producers of titanium minerals and zircon, which operates the Moma Titanium Minerals Mine in northern Mozambique, has provided an operational update. As previously announced, Kenmare has been engaged in a substantial cost cut- ting programme in an effort to reduce unit costs and conserve cash. Unit cash operat- ing costs per tonne of product produced declined by 14 % for H1 2014 relative to H1 2013. However, these and subsequent savings have been insufficient to offset the decline in prices experienced by the company. Kenmare has undertaken a thorough review of operations and staffing which

that could be mined by open pit,” said Bill Nielsen, President and CEO of Kombat Copper. “This initial drill programme’s objective is to establish the style and struc- tural emplacement of mineralisation in several prioritised areas. “Additional drilling will be required to attain a sufficient density to calculate a compliant mineral resource estimate. The company is greatly encouraged that recent compilation work and consultation with past mine staff have provided this opportunity to define near-surface min- eral resources that could be fast tracked to production.”  damage to the power line between Moma and the city of Nampula, causing an inter- ruption to the supply of grid power to the mine. 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 follow- ing a previous storm and, as a result, some of the materials necessary for repair are already at site with additional supplies to follow. A joint Kenmare and Electricidade de Moçambique team has been mobilised to begin repairs as the flooding subsides.  In the meantime, the diesel generators have continued to operate and the mine has been processing HMC stocks, magnetic and non-magnetic concentrate stocks, and exporting product. 

which were the primary access points for the historic Kombat mine. Past produc- tion from the mine over a 45-year period was 12,46 Mt grading 2,62 % Cu and 18,0 g/t Ag. Kombat Copper has enlisted the services of a reputable Namibian-based drill con- tractor to complete the drilling activities. “There is evidence from past drilling and established underground workings in the area to be tested by this drilling that supports the concept of a potentially significant near-surface mineral resource The company says it has been engaged with employee representatives to explore alternatives including amendments to pay scales andvoluntary redundancies. However, it is now expected that compulsory redun- dancies will be necessary. The redundancy process is expected to result in a reduction of 15-20%of themine’swork force. Kenmare says it is continuing to engage with the Government of Mozambique and workers’ unions on this matter. Kenmare also reports that recent flood- ing in Nampula Province has resulted in

Kombat Copper explores open-pit scenario Kombat Copper Inc, listed on the TSX-V, announced recently that it was preparing for a surface drill programme at the Kombat mine property in northern Namibia, expected to commence this month (March). According to the company, the programme will begin a renewed focus on defining a near surface mineral resource to support an open-pit scenario that would allow a fast track to production.

The programme includes a 2 000 m diamond drill campaign targeting the area surrounding the #1 and the #3 shafts,

14  MODERN MINING  March 2015