Mozambique extends Kenmare’s Moma mining agreement to 2044
By the AFREEQUE newsroom, based on Carta de Moçambique
The Mozambican government has approved extending Kenmare Resources’ agreement to process and export heavy mineral sands from Moma, Nampula province, until 2044. Royalties will rise in stages to 5%, while the company plans to invest at least $200 million and allocate $50 million to social projects, according to Carta de Moçambique, citing Miningmx.
Mozambique’s Council of Ministers has approved the extension until 2044 of the agreement allowing Kenmare, an Irish mining group, to process and export heavy mineral sands from Moma in Nampula province, according to Miningmx. The decision ends a dispute over royalties and tax and customs benefits.
Royalties on gross revenue will rise from 1% to 3% between 2025 and 2029, then to 4% between 2030 and 2034 and 5% between 2035 and 2044. Kenmare will have to invest at least $200 million in equipment and infrastructure, as well as $50 million in social projects. Mozambique will be able to buy up to 20% of annual production at market prices for local processing.
The amendment still has to be signed and submitted to the Administrative Court. The processing and export agreement is separate from the mining concession, which runs until August 2029. Kenmare chief executive Tom Hickey said the $200 million investment was essentially in line with normal maintenance expenditure, and that the social commitments extended the group’s current practice.
The extension follows the wait for Mozambican approval reported on 21 October in Kenmare awaits Mozambique’s confirmation of mining agreement renewal. A clause provides for a possible further 20-year extension from 2044, subject to the legislation in force at the time.
