Mozambique: Negotiations with Kenmare seek better distribution of Moma titanium mine resources – govt

The Mozambican Government on Friday denied the existence of a dispute with mining company Kenmare, which operates the Moma titanium mine, and said a contractual renegotiation is under way that, it says, aims to ensure a better distribution of resources. “Kenmare is presenting its positions, its concerns and its limitations. The Government is doing exactly the same, to bring the positions closer and ensure that the exploitation of natural resources benefits both parties in the best possible way.

That is all that is under discussion,” Government spokesperson Inocêncio Impissa said, responding to journalists’ questions in Maputo. “The stages, the sequence, the legal forum for the process – these are the different phases that the negotiation process may naturally involve. There is nothing unusual for us so far,” Impissa said.

Kenmare said on 9 March that Mozambique’s Tax Authority (AT) is imposing new conditions unilaterally and admitted it may resort to international arbitration. On Friday, 13 March, Inocêncio Impissa stressed that Kenmare “had a period of time” to establish itself in the country, benefiting from “various support measures” to “consolidate its business”, including its own fiscal and customs regime. “We need to rethink and renegotiate certain terms that will allow that business to continue to take place, but also allow the country to continue gaining and now gain a little better,” Impissa said, acknowledging that with the end of the concession in 2024 the Government “decided to establish a new regime”.

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READ:Mozambique: Chapo says it is a “golden age” to renegotiate megaprojects – O País “Therefore, the government removed the fiscal protection regime for the entity. This implies that the company will, for example, start paying all the taxes it previously did not pay on the goods it imports and so on. This also allows us, naturally, to share more fairly the gains that were paid as royalties to Mozambique, of around 1.5%, compared with what the State or the Government has in fact proposed for the purpose,” he said, admitting that Kenmare is also defending the “environment that is most favourable to it”.

Quoted ininformation sent to investorsthis week, Kenmare director Tom Hickey said that the Implementation Agreement (IA) for the operation, which expired in 2024 and remains to be renewed, “is foundational to Moma’s long-term success” and expressed concern over the Tax Authority trying to increase royalty collection without a new IA in place, while the mine is operating under a temporary regime. “We are very concerned by the Mozambique Tax Authority’s recent attempt to impose terms that have not been mutually agreed with Kenmare. This action contrasts with the outcome of a meeting with various Ministers and other Government representatives last month where it was agreed we would work together to conclude negotiations by 20 March.

We are seeking urgent clarification from the Government,” Hickey added. READ:Kenmare warns of arbitration over ‘unilateral’ Mozambique royalties change In the information sent to investors, Tom Hickey explained that the proposal submitted to the Government in April 2025 for the new IA “included several concessions significantly beyond our contractual entitlements, reflecting our commitment to an equitable distribution of value from Moma and substantial ongoing investment in our operations and in Moma’s host communities over 40 years.”

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