Mozambique: President says negotiations continue with Mozal and Kenmare

The President of Mozambique today assured that negotiations are ongoing both with Mozal – the country’s largest industrial unit, which was placed under care and maintenance on Sunday – and with the mining company Kenmare – regarding the continued operation of the Moma titanium mine. “With regard to Kenmare and Mozal, what I can say at this moment is that the negotiations continue,” Daniel Chapo said in Brussels today, responding to journalists during the review of his four-day visit to Belgium. According to the head of state, Mozal — the second-largest aluminium smelter in Africa, employing more than 1,000 direct and 4,000 indirect workers, and inactive since Sunday — saw its energy supply contract expire.

“And it is normal, when a contract is to be renewed, that the parties sit down and discuss new terms and clauses,” Daniel Chapo explained. “It’s like someone renting a house, isn’t it? For five years.

Then there are inflation issues, the area may depreciate, the house may have leaks or other problems… therefore, both parties sit down and find new ways to reach an agreement. What I can tell you is that, both with Mozal and Kenmare, up until now while we are here in Brussels, we continue to talk,” he added. Kenmare, which operates the Moma titanium mine in Nampula province, stated that the Mozambican Tax Authority (AT) is imposing new conditions unilaterally, indicating it may resort to international arbitration.

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This position was subsequently refuted by the Mozambican government, which confirmed that a contractual renegotiation is underway to ensure a better distribution of resources. Daniel Chapo emphasised that, so far, neither party has broken off negotiations or resorted to arbitration, reiterating that “the government continues to talk with Mozal, and Kenmare continues to talk with the government.” “We believe that within these negotiations, it is possible to find solutions. Absolutely, because it is by talking that we reach understanding,” the Mozambican President said.

On 9 March, Kenmare director Tom Hickey, cited in a report to investors, said that the Implementation Agreement (IA) for that operation, which expired in 2024 and remains unrenewed, “is foundational to Moma’s long-term success,” and expressed concern over the Tax Authority attempting to accelerate royalty collection without a new IA in place, while the mine operates under a temporary regime. In the investor report, Tom Hickey explained that the proposal submitted to the government in April 2025 for a new IA “included several concessions,” reflecting the “commitment to equitable value distribution from Moma and to continued substantial investment” in operations and local communities over 40 years. Meanwhile, on Friday, the Mozambican government denied any dispute with Kenmare and confirmed that contractual renegotiations are ongoing, aimed at achieving a better distribution of resources.

“Kenmare is presenting its positions, concerns, and limitations. The government is doing exactly the same, to bring positions closer and ensure that the exploitation of natural resources benefits both parties as effectively as possible. That is all that is under discussion,” said government spokesperson Inocêncio Impissa, responding to journalists’ questions in Maputo. South32, which owns 63.7% of Mozal, previously described the proposed energy tariff for the Mozal aluminium smelter in Maputo as “completely untenable,” justifying its shutdown while leaving open the possibility of restarting Mozambique’s largest industry if conditions change.

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