Kenmare Resources dismisses 20 pct of its mine workers in Mozambique

18 February 2015

The fall in the prices of minerals extracted by Ireland’s Kenmare Resources in Mozambique led the company to lay off between 15 and 20 percent of its workers in the country, the company said in a statement issued Tuesday.

The company, which explores heavy sands deposits in Moma, Nampula province, said in a statement that although the operating costs per ton of product had fallen by 14 percent in the first half of 2014 this was insufficient “to offset the fall in prices of minerals on international markets. ”

Without giving a figure for the number of workers affected by the cut, Kenmare Resources said it had tried to improve the efficiency of its mining business, including through a set of savings measures and is now looking for alternatives for its surplus workers.

In September 2014, Kenmare Resources announced a loss of US$17.9 million in the first half, after a profit of US$6.9 million in the same period of 2013.

Registered losses were due, according to Michael Carvill the CEO of Irish company, to the fact that prices in the international markets for the minerals extracted by the company have fallen 23 percent for ilmenite and 7 percent for primary zircon. (macauhub/MZ)