JOHANNESBURG (miningweekly.com) – Multicommodity play Kenmare Resources expects its production for the second half of the year to improve, as power utility Electricidade de Moçambique commissions equipment to increase grid power capacity and stability.
Output at Kenmare’s Moma mine was “severely impacted” by 57 days of storm-related power outages in the first quarter of the year, followed by further power supply problems in the second quarter as remedial work was undertaken on the power line.
Heavy minerals concentrate production fell by 25% year-on-year to 454 500 t in the six months to June 30, compared with 604 200 t in the first half of 2014.
Ilmenite production fell by 27% year-on-year to 324 100 t for the six months under review, while zircon output increased by 11% year-on-year to 23 800 t.
Meanwhile, the company on Monday also announced the immediate appointment of John Ensall as a lender-approved nonexecutive director and strategic options committee chairperson, informing the market that he would be tasked with amending the group’s financing agreement.
The role of the committee was to oversee the development and evaluation of strategic options available to the company, including mergers and acquisition activity that could include the possible buyout of Kenmare by mineral sands explorer Iluka Resources.
The committee had also been tasked with investigating alternatives with regard to asset disposal, financial and operational restructuring, equity raising or other equity or debt financing.
It would further oversee the negotiation and execution of any proposed restructuring of the group’s debt obligations.
Ensall had over 20 years’ experience in refinancing, transforming and developing businesses across a range of sectors, having started his career in corporate finance at Coopers & Lybrand Deloitte, before occupying a number of CEO positions at Clares Group, Food Brokers and Addis Group.
He received an undergraduate degree in Engineering from the University of Leicester, in the UK, and had an MBA from City University Business School, in London.
“I would like to welcome John to the board of Kenmare. He brings a wealth of experience which will add to the board's collective knowledge,” chairperson Steven McTiernan said in a statement.