The Irish mining firm, Kenmare Resources has predicted this year to be a watershed, with investors beginning to benefit from the huge capital investment in the mine, APA learns here Tuesday.
The firm, which mines ilmenite, rutile and zircon from the heavy mineral sands in the northern Mozambican district of Moma, hopes to focus on getting to a position where it can begin to pay dividends to investors. However, he added that it must first meet its debt repayment obligations.
Kenmare Resources Chairman, Justin Loasby, explained that, with the completion of the mine’s expansion, Kenmare can concentrate on achieving a sustainable return.
Last year, the company more than doubled its profits to US$49.5 million, up from US$23.7 million the previous year.
The mine produced 574,000 tons of ilmenite and 46,900 tons of zircon, which was less than the target of 630.000 tons of ilmenite and 50,000 tons of zircon. This has been blamed on disruptions to the electricity supply and geotechnical difficulties with the dredge pond.
Loasby pointed out that the expansion in the mine’s capacity will result in a fifty per cent increase in production. The expansion is due to begin operation in the second quarter of this year and to be fully operational by the end of the year.
The mine’s expansion was responsible for most of the 192 million dollars invested by the company during 2012.
According to Loasby, “with the expanded capacity soon to commence ramp-up, Kenmare is now emerging from its genesis, first in exploration and then in development of the mineral resources at Moma, into a company which is focused on the efficient operation of those assets and earning a superior return on the investments that its shareholders have made”.
Source African Press Agency
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