Kenmare resumes zircon mining at Moma in Mozambique

Nov. 9, 2010 - In line with earlier expectations, Irish mining company Kenmare Resources on Tuesday confirmed that mining at its Moma titanium minerals mine, in Mozambique, has resumed.
On October 8, the miner had to halt mining operations, which was conducted with two dredges, at Moma owing to a breach in a settling pond containment wall, which caused a nontoxic discharge of water, sand and clay to flow into the nearby village of Topuito.
Improvements to the settling pond berm complex have since been made and approved by the Mozambican Department of Public Works, allowing mining to restart.
Throughout the mining stoppage, Kenmare had continued to process material from an existing heavy-minerals concentrate (HMC) stockpile.
As new stockpiles of HMC would first have to be left to dry, the minerals separation plant would continue to process ore from the existing stockpile for a further ten days.
The Moma mine contains reserves of ilmenite and rutile, as well as zircon.
Studies concluded at the mine earlier this year, have shown that the mining company could increase production of ilmenite and associated products to 1,2-million tons a year by 2012. This would require an investment of about $200-million.
The mine had produced 826 000 t of heavy-minerals concentrate and 494 400 t of processed heavy minerals during 2009.
Compensation has been paid to the Topuito community for the damage caused during the October 8 incident.
Kenmare's share price on the LSE rose by 2,63% to 23,4 euro cents a share following the announcement, compared with Monday's close of 22,8 euro cents a share.