Kenmare Resources to cut workers in Mozambique mine
Firm to let go15-20% of workers at Moma mine due to weak prices
Irish titanium and zircon miner Kenmare Resources is to make a number of employees at its mine in Mozambique redundant as a result of falling mineral prices. (Photograph: Will Burgess/Bloomberg)
Irish titanium and zircon miner Kenmare Resources is to make a number of employees at its mine in Mozambique redundant as a result of falling mineral prices.
The company, which operates the Moma Titanium Minerals Mine in northern Mozambique, said on Tuesday that while its unit cash operating costs per tonne of product produced declined by 14 per cent in the first half of 2014, these, and subsequent savings “have been insufficient to offset the decline in prices experienced by the company”.
“ Unfortunately this will result in a focused reduction of employees at the mine,” Kenmare said, adding that it has been engaged with employee representatives to explore alternatives including, amendments to pay scales and voluntary redundancies.
It is now expected that compulsory redundancies will be necessary, and Kenmare said that it will likely see 15-20 per cent of the mine’s work force let go.
Titanium ingot prices have fallen by about a third since 2012.
Also on Tuesday Kenmare said that following the recent flooding in northern Mozambique, grid power has now been restored to the mine.