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14
MODERN MINING
March 2015
MINING News
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
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,
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
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.”
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.
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
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).
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.