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Kenmare Resources plc - Annual General Meeting ...
Kenmare Resources plc - Annual General Meeting ....
About this update from Kenmare Resources Plc
[{"type":"text","content":"\n Kenmare Resources plc - Annual General Meeting Update StatementKenmare Resources plc (\"Kenmare\" or \"the Company\")29 May 2013Annual General Meeting Update StatementThe following update on the status of the Phase II expansion at Moma, and on production, market conditions and outlook is being provided at the Company's Annual General Meeting, which is being held in Dublin this morning.ExpansionKenmare is pleased to announce that, whilst cold commissioning is still underway, processing of ore through the new dredge and Wet Concentrator Plant B (\"WCP B\"), producing Heavy Mineral Concentrate (\"HMC\"), has commenced. Ore processing rates will gradually increase from now as we move into the ramp-up phase of the Moma Mine Phase II expansion facilities.Cold commissioning of the Wet High Intensity Magnetic Separation (\"WHIMS\") Plant is also still underway, while processing of HMC through this facility has also commenced and commissioning of the Auxiliary Ilmenite Plant is at an advanced stage. Integration of the existing and expansion facilities in the Mineral Separation Plant (\"MSP\") will follow and ramp-up of the expanded facilities is due to be completed during the fourth quarter of this year.The capital cost estimate for the expansion reported in the Kenmare half-yearly results in August 2012 was US$350 million. Since then, as previously advised in our communications to shareholders, the project schedule has extended with a resultant increase in costs. Demobilisation of contractor personnel is on-going and the negotiations to close out expansion contracts will take some time to conclude. We anticipate that the expansion capital cost has escalated by approximately 10% from that estimate, and we will continue to manage remaining contractor costs in order to bring the expansion to an efficient close as quickly as possible.ProductionAs anticipated, production of HMC has been maintained at improved levels since Wet Concentrator Plant A (\"WCP A\") completed the transition from the Namalope Flats to the top of the dunal plateau, where it will mine for at least the next 10 years. Whilst the transition to the plateau was challenging, WCP A is now operating in an area with mining conditions that are more suitable for the two original dredges. This transition is a once only event in the life of the orebody. Forecas...