Business
Operational Update
Operational Update.
About this update from Kenmare Resources Plc
[{"type":"text","content":"\n \n \n Operational Update\n \n \n \n \n K\n enmare Resources plc \n (“Kenmare” or the “Company” or “the Group”)\n 2 March 2023\n \n Operational\n Update\n \n Kenmare Resources plc (LSE:KMR, ISE:KMR), one of the leading global producers of titanium minerals and zircon, which operates the Moma Titanium Minerals Mine in northern Mozambique, provides an operational update.\n The southern hemisphere rainy season lasts from November to April, bringing widespread electrical storms to northern Mozambique. During these storms, lightning strikes often lead to instability in the power supply to the mine. Kenmare employs a range of protection systems to minimise the impact on operations, including the recently installed Rotary Uninterruptible Power Supply (“RUPS”) system to ensure stable power to the Mineral Separation Plant (“MSP”) and a synchronous condenser (a voltage stabilisation device referred to as a “Dip Doctor”), which alleviates approximately 80% of the dips and spikes in power supply to the mine.\n In early February 2023, power lines nearby the mine were subject to a direct lightning strike of unusually high intensity. The severity of the strike cut two of the powerline conductors and the energy discharged overwhelmed the mine’s lightning protection systems. In addition to damaging the power line infrastructure, a large number of variable speed drives and electronic devices at the mine were also damaged, primarily at the three Wet Concentrator Plants (“WCPs”). This was a highly unusual event, which has not previously occurred in Kenmare’s 15 years of operations.\n Mining operations were severely disrupted while repairs were carried out. While Kenmare is working hard to recover lost production of Heavy Mineral Concentrate, production of ilmenite and rutile is now expected to be towards the lower half of the guidance range for 2023. Due to a drawdown of intermediate stocks at the MSP, the guidance range for zircon and concentrates remains unchanged. The shipping schedule has also been less affected, as the MSP continued to operate, and existing finished product inventories have been sufficient to allow product shipments to continue.\n The Company has undertaken a process of either replacing or repairing the damaged equipment and WCP production capacity has now been restored at close to normal operating levels. The MSP sustained ...