Power no longer major threat to Moma – Kenmare

JOHANNESBURG (miningweekly.com) – Power supply challenges that have affected production at the Moma titanium minerals mine, in northern Mozambique, have been eased considerably with visibly improved power quality and consistency since December, enabling a production surge during the first quarter of the year.

Titanium minerals and zircon producer Kenmare Resources on Friday said the installation and commissioning of additional power transmission infrastructure by Electricidade de Moçambique (EdM) led to a capacity increase of 50 MW, or 42%, in December.

“We have already seen considerable improvement in power quality and reliability in the first few months of 2016 and we believe power should no longer be a fundamental constraint on Moma's ability to produce,” said MD Michael Carvill.

A further increase in transmission capacity of 10 MW was expected to be commissioned in mid-2016.

Further, Kenmare indicated that a ship-based 100 MW mobile power generation plant positioned nearby at Nacala and currently being commissioned was expected to provide significant additional capacity and stabilisation of the network voltage.

“These improvements to the network gave the management team confidence in placing the diesel generators on standby earlier than expected, through the high thunderstorm risk summer months, with no significant effect to power supply or operations. However, the generators remain available on standby should the need arise,” Carvill said.

In a trading update for the first quarter ended March 31, Kenmare noted that ore mined had increased 120% to seven-million tonnes, mostly owing to improved power supply quality and consistency.

Heavy mineral concentrate production in the first quarter increased 90% to 274 800 t, while ilmenite production increased 39% to 185 000 t. Zircon production increased 12% to 11 600 t.

Given the more stable power supply, Kenmare expected to produce 950 000 t of ilmenite, 70 000 t of zircon and 8 000 t of rutile for the full year.