Kenmare Resources extinguishes fire worries at Moma

23rd Oct 2013 11:26

News that a fire at Kenmare Resources' only operating mine will have a 'limited' impact on production until late November has boosted shares in the company. The FTSE 250-listed miner revealed the fire at one of the two offshore wet concentrator plants (WCPs) at its Moma mine in Mozambique, which it reported on Monday 21st, had not caused any structural damage.Kenmare said it therefore expected there would be "only limited effect on production" at the heavy mineral separation plant, the next stage in its production process, as the plant would use mineral concentrate from current stockpiles and feed from the second WCP.Repair works were now underway and replacement parts ordered, the company said the longest wait for items due for delivery would be until mid-November as they become available from manufacturers.Kenmare, which has taken the opportunity to bring forward scheduled maintenance on the damaged WCP, said the fire had occurred soon after the completion of routine welding repairs and an investigation into the cause of the incident was in progress.No injuries were suffered as a result of the incident.Shares in Kenmare Resources were up 4.3% to 22.71p at 11:31 on Wednesday.OH