Announcements - 17 July 2008

 

Update on engineering matters previously notified to the market

 

Kenmare owns and operates the Moma Titanium Minerals Mine located in northern Mozambique. Kenmare has been commissioning the mine and gradually increasing its production rate since the handover of the Mineral Separation Plant (MSP) in August 2007. 

 

Kenmare announces the resolution of the following engineering matters at the Mine:

 

• Dredge motors – Kenmare has completed the installation of new dredge motors, now designed and manufactured to appropriate specifications. This allows greater throughput of concentrate to the MSP. 
• Vibrating screens – throughput at the MSP had been limited by the screens initially installed. These have now been replaced and are working to plan.
• Electricity – previously unstable power supply issues have been addressed by Kenmare and no longer have a material adverse impact on production. 
• Zircon and rutile circuits – these are now producing minerals to specification and the contractor is working on achieving the agreed recovery rate.
• Roaster plant – the contractor has still to complete this facility. The roaster plant improves the quality of certain finished products. However, given strong market demand and the good quality of minerals produced to date, this has not been a commercial disadvantage.

No new commissioning issues have arisen and the production ramp-up is ongoing.

 

The entire cost of installation, transport and replacement of faulty equipment is covered under warranty by the construction contract with the Multiplex-Bateman Joint Venture.

 

The resolution of these matters has contributed to production in June being the highest achieved to date and shipments to customers continue.

For more information:

 

Kenmare Resources plc

Michael Carvill, Managing Director

Mob: + 353 87 674 0110

Deirdre Corcoran, Company Secretary

Tel: +353 1 6710411

 

Murray Consultants

Jim Milton

Tel: +353 1 498 0345

Mob: + 353 86 255 8400

 

Conduit PR Ltd

Jane Stacey/Leesa Peters

Tel: +44 207 429 6606

Mob: +44 7922 923306