KMR Kenmare Resources Plc

 
TIDMKMR 
 
Kenmare Resources plc ("Kenmare" or "the Company") 
 
5 March, 2012 
 
                             Moma Production Update 
 
 
Further  to the Moma Mine Update  issued on 25 January, 2012 Kenmare provides an 
additional update on operations. 
 
Due  principally to two key factors, being  the continuing effect on mining of a 
band  of clay rich ore and the direct and indirect impact of exceptional adverse 
weather  conditions, the final output for January was lower than expected. These 
factors  have also  continued to  adversely impact  on February production, such 
that  overall the Moma Mine produced 116,500 tonnes of heavy mineral concentrate 
("HMC") during January and February 2012. The mineral separation plant processed 
this  HMC and  produced 76,500 tonnes  of ilmenite  and 7,100 tonnes  of zircon, 
including 3,700 tonnes of a secondary zircon product. 
 
Mining  rates during January and  some of February were  adversely impacted by a 
clay  rich ore band in  the mine path. February  showed some alleviation of this 
situation  as the dredges moved into higher  faces. As noted in our announcement 
of  25 January, in  order to  minimise the  impact of  the clay rich ore on mine 
production  of HMC during 2012, a 500 tonnes per hour ("tph") supplementary dry- 
mining  operation was commissioned and is  being ramped-up to 1,000 tph. All the 
components to complete this process are on site and ramp-up will continue during 
March. 
 
Principally  to ensure the optimal  product mix and maximise  revenues in a very 
positive   market,   a   further  supplementary  dry-mining  operation  will  be 
established  for an  additional 1,000 tph  later this  year. These supplementary 
dry-mining   operations   represent   an  interim  solution  to  varying  mining 
conditions.   Kenmare  has  purchased  a  new  dredge  for  the  expansion  with 
significantly  greater  capacity  and  which  is  more robust than either of the 
existing dredges and is currently reviewing proposals to commission the building 
of  a similar  larger, higher  capacity dredge  to replace  one of  the existing 
dredges  in Mining Pond A, which  would provide a comprehensive, long-term, low- 
operating cost solution to variable mining conditions. 
 
Production was also hampered by an exceptional number of power outages since the 
beginning  of this year, largely a result  of an unusually active cyclone season 
that  impacted power reliability on the national grid. The annual cyclone season 
typically  ends in March or April. Kenmare adopted a proactive approach in order 
to  safeguard the plants by shutting down as cyclones approached, which resulted 
in  some  operational  downtime.  Voltage  stabilisation  equipment  to deal the 
majority  of grid power fluctuations  is available on the  market and Kenmare is 
reviewing options to further stabilize the electricity supply. 
 
With  the approaching end of the  cyclone season and as supplementary dry-mining 
operations  continue to ramp-up, Kenmare expects to return to more normal levels 
of production over the coming weeks. 
 
Further updates in relation to Q1 production and expectations for production and 
product  pricing,  which  remains  extremely  robust,  will be provided with the 
Company's 2011 full year results. 
 
For further information, please contact: 
 
Kenmare Resources plc. 
Michael Carvill, Managing Director 
Tel: +353 1 671 0411 
Mob: + 353 87 674 0110 
 
Jacob Deysel, Operations Director 
Tel: +353 1 671 0411 
Mob: + 353 87 613 9609 
 
Tony McCluskey, Financial Director 
Tel: +353 1 671 0411 
Mob: + 353 87 674 0346 
 
Murray Consultants 
Joe Heron 
Tel: +353 1 498 0300 
Mob: +353 87 690 9735 
 
Tavistock Communications 
Jos Simson / Paul Youens 
Tel: +44 207 920 3150 
Mob: +44 7843 260 623 
 
 
 
 
 
 
 
This announcement is distributed by Thomson Reuters on behalf of 
Thomson Reuters clients. The owner of this announcement warrants that: 
(i) the releases contained herein are protected by copyright and 
    other applicable laws; and 
(ii) they are solely responsible for the content, accuracy and 
     originality of the information contained therein. 
 
Source: Kenmare Resources via Thomson Reuters ONE 
 
[HUG#1591145] 
 

Kenmare Resources (LSE:KMR)
Historical Stock Chart
From May 2024 to Jun 2024

Kenmare Resources (LSE:KMR)
Historical Stock Chart
From Jun 2023 to Jun 2024