17th Feb 2015 08:34
LONDON (Alliance News) - Shares in Kenmare Resources PLC said Tuesday its cost-cutting efforts at the Moma titanium mine in Mozambique have not been sufficient and it will have to make compulsory redundancies at the site.
Kenmare shares were down 1.3% to 4.06 pence on Tuesday morning, having initially fallen to 3.51p at the London open, after it said it will have to cut 15-20% of the workforce at the Moma mine.
The group said the cost-cutting measures taken at the mine in recent months have not been enough to offset the decline in prices it has faced.
Elsewhere, the company said grid power has been restored to Moma following the recent flooding in northern Mozambique, meaning production has now restarted.
By Sam Unsted; [email protected]; @SamUAtAlliance
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