Kenmare Resources' Moma mine, in Mozambique
London-listed titanium and zircon producer Kenmare Resources has advised that power lines near its Moma mine, in northern Mozambique, were subject to an intense direct lightning strike, which cut out two of the powerline conductors and overwhelmed the mine’s lightning protection systems.
Kenmare says that, in addition to the damage to the power line infrastructure, many variable speed drives (VSDs) and electronic devices at the mine were also damaged, primarily at the three wet concentrator plants (WCPs).
The company explains that, in its 15 years of operating the Moma mine, this type of lightning damage has never occurred before.
Since the rainy season from November to April often brings widespread electrical storms to Mozambique, the company has a range of protection systems in place to minimise the impact on operations.
These systems include a rotary uninterruptible power supply system to ensure stable power to the mineral separation plant (MSP) and a synchronous condenser, which is a voltage stabilisation device that alleviates about 80% of the dips and spikes in power supply to the mine.
Kenmare states that mining operations were severely disrupted while repairs were carried out.
The company is working hard to recover lost production of heavy mineral concentrate, while ilmenite and rutile production is expected to be towards the lower end of production guidance for the year.
Owing to the company being able to draw down from intermediate stocks at the MSP, the guidance range for zircon and concentrates remains unchanged.
Ilmenite production is set at between 1.05-million and 1.15-million tonnes, rutile at between 8 000 and 9 000 t and concentrates at between 37 000 and 41 000 t.
Kenmare advises that its shipping schedule has not been affected by the lightning damage or processing delays, since the MSP continued to operate and existing finished product inventories have been sufficient to allow for continued product shipments.
The WCP production capacity has since been restored at optimal operating levels and Kenmare is working to replace or repair the last of the damaged equipment, particularly the VSDs.
The company says it has insurance cover in place and is liaising with insurers to process claims related to the lightning strike.
Kenmare will announce in more detail the extent of the capital and operating cost impacts during its 2022 preliminary results presentation on March 22.