Work carried out by Mozambican power company, Electricidade de Moçambique (EdM) on the country’s national power grid led to a drop in production for Kenmare Resources throughout the third quarter of the year and into the fourth quarter, the mining company said in a statement issued Wednesday.
The company, which mines heavy minerals deposits in Moma, Nampula province, said that the need to move mining equipment from a low-lying area to a higher one would mean that production would be around 10 percent down on targets set for the year of 630,000 tons of ilmenite and 50,000 tons of zircon.
In its statement, which provides an update on the project, the board of Kenmare Resources also said there had been drops in the prices of zircon and titanium, which was lower for ilmenite, and which account for 70 percent of production at Moma.
Kenmare said that the drop in prices was due to a process of reducing stocks, which, once it had been concluded, probably in the second quarter of 2013, would lead to a gradual increase in demand and, as a result, a rise in the prices of the minerals that the company mines. (macauhub)