Mozambique Mining: Floods with negative impacts on Kenmare Resources operations

The recent floods which occurred in Nampula province, northern Mozambique, affected the activity of Irish company Kenmare Resources, which explores heavy minerals deposits in Moma, the company said in a statement.

The floods have led to the power transmission line between the provincial capital, Nampula and the mine to fall down and the company was forced to operate using generators.

In a statement published on its website, the company claims that the electricity stoppage will have a limited effect given the significant amounts of ilmenite that are available.

Earlier this month, the company management reached agreement with the Mozambican Ministry of Labour to lay off just 161 workers, less than half the 375 previously announced.

Kenmare Resources announced last February a reduction of 20 percent of its workers in the heavy minerals mine in Moma, after cost-cutting measures were insufficient to offset the decrease in commodities prices.

In August 2014, the company announced an operating loss of 13.5 million euros at its heavy minerals mine in Mozambique in the first half of 2014, and said the losses were due to lower prices. (macauhub/MZ)