KMR Kenmare Resources Plc

 
TIDMKMR 
 
Kenmare Resources plc ("Kenmare" or "the Company") 
 
27(th) October, 2010 
 
                          Update on Moma Mine Incident 
 
Kenmare today provides a further update on progress following an incident at its 
Moma Mine in Mozambique on October 8 where a settling pond breached its southern 
retaining wall resulting in water, sand and clay flowing through part of the 
nearby village of Topuito. 
 
An extensive search operation has been undertaken to find a four year old girl 
who has been missing since the event. The search continues, however the Company 
and family, with whom we are closely liaising, are both now operating under the 
assumption that the little girl has been lost. We are deeply saddened by this 
and our thoughts are with the family. 
 
In total, 388 houses were affected. Kenmare is pleased to report that 287 of 
these homes have now been repaired, cleaned and declared suitable for use, 
allowing residents to move back in.  33 traditional homes are being rebuilt and 
repair work is being undertaken on the remaining homes. Teams of builders from 
the affected village have been hired to complete the repair work as quickly as 
possible. 
 
A compensation committee has been set up to agree compensation for each family's 
lost goods.  The committee commenced work on October 23, and is made up of 
representatives from Government, local administration, village leaders and 
Kenmare.  After agreement on compensation, each family will receive a further 
payment from the Company relative to how they were affected by the incident. 
 
Kenmare has now extensively reviewed the berm system which surrounds the 
containment ponds and implemented design changes provided by independent 
engineering firms to prevent any future incidents.  The berms are significantly 
larger than anything used previously and employ geotextile layers to ensure that 
the berms are resistant to erosion.  These berms will be employed in a system 
which uses regular external pond management auditing.  The new system will be in 
place by November 8, ready for dredge mining to recommence subject to approval 
from the Government of Mozambique. 
 
The mineral separation plant (MSP) at Moma has continued to produce products 
from Kenmare's stockpile of heavy mineral concentrate. Kenmare has further 
stockpiles of material used in the early commissioning of the plant which are 
available to be reprocessed through the MSP. Kenmare intends to use this 
material once the current stockpile is depleted.  The Company expects this will 
result in a drop in recovery due to the volatility in grade of this material, 
but is not yet in a position to predict the exact extent. 
 
Michael Carvill added: "All the staff at the mine have worked night and day and 
it has been heartening to see the efforts everyone has put in.  We are working 
closely with the Mozambican Government and local leaders in an effort to return 
village life to normal as quickly as possible and ensure that this incident is 
never repeated." 
 
 
For further information, please contact: 
 
Kenmare Resources plc. 
Tony McCluskey, Financial Director 
Tel: +353 1 6710411 
Mob: + 353 87 674 0346 
 
Murray Consultants 
Jim Milton 
Tel: +353 1 498 0300 
Mob: + 353 86 2558400 
Joe Heron 
Tel: +353 1 498 0300 
Mob: + 353 87 690 9735 
 
Conduit PR Ltd 
Leesa Peters/Charlie Geller 
Tel: +44 207 429 6604 
Mob: +44 752 823 3383 
 
 
[HUG#1455560] 
 
 
 
 
 
 
 
 
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Source: Kenmare Resources via Thomson Reuters ONE 
 

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