Mining and exploration firm Kenmare Resources has established a $22 million (€15.54 million) standby line of credit due to a delay in revenues from its titanium mine at Moma in Mozambique.

In interim results yesterday, the company said it needed the loan facility because the late delivery of facilities from its contractor had had an impact on its finances. "We believe that our funding arrangements more than cover the requirements of the project for existing production capacity."

The mineral separation plant at the mine is currently operating at three-quarters of its design capacity, the firm said.

Stating that the early arrival of a second dredge would accelerate the ramp-up to full production, the company said it intended to be operating at a rate of 800,000 tonnes per annum of the titanium ore ilmenite before the end of the year.

Kenmare had an operating loss of $1.7 million in the six months to June, down from $4.95 million a year earlier and resulting mainly from foreign exchange losses. The loss per share was one cent, down from 51 cent.

The company's board of directors is understood to have established a subcommittee this week to consider what would be required to remove director Donal Kinsella from its board.

While the subcommittee will not report to the board until its next meeting, it is likely that an egm will be called. Mr Kinsella's removal is under consideration in light of his legal action against the company over his removal as chairman of its audit committee.

That followed an inquiry into an episode during a site visit to the Moma mine in May when he appeared naked at the bedroom of company secretary Deirdre Corcoran. Mr Kinsella said he was sleepwalking at the time.