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Kenmare Confirms Renewal of Moma Licence Ahead of 21 December Expiry

Kenmare Confirms Renewal of Moma Licence Ahead of 21 December Expiry

Kenmare Resources, the mining company that operates the Moma mineral sands mine, assured on Thursday (17) that its exploration licence will be renewed by the government before it expires on 21 December. The company claims that the authorities share the objective of completing the renewal process on time, without the need to resort to litigation, as reported by the Mining Mxportal .

According to the information, the licence renewal comes at a time when Mozambique is going through an electoral period. The 9 October elections are still awaiting final results, with Frelimo leading the provisional results in all 11 provinces.

However, opposition parties have denounced irregularities in the process, even calling for a strike. The electoral authorities have until 24 October to announce the final results.

Kenmare’s exploration licence is governed by an implementation agreement that defines the fiscal terms and other benefits within the Industrial Free Zone where the company conducts its mining, processing and export activities. This agreement does not directly interfere with the mine’s day-to-day operations, but it is fundamental to guaranteeing the legal and fiscal framework of its operations.

In operational terms, Kenmare reported a 14% drop in heavy mineral concentrate production in the third quarter of this year, totalling 355,400 tonnes. Titanium production also fell by 12% to 257,400 tonnes. However, primary zircon production increased by 4 per cent compared to the previous year.

Despite the drop in production, sales saw a significant increase, with shipments 85% higher than in the same period last year, reaching 302,700 tonnes. This increase was due to better weather conditions and efficient shipping times.

Tom Hickey, Kenmare’s managing director, emphasised that demand for all the company’s products was ‘encouraging’ during the quarter, despite the operational challenges.

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The company also reported on a recent tragic incident in which a 75-year-old pedestrian was fatally struck by a pontoon transported by a road contractor. The pontoon was part of a series of pieces of equipment destined for the Wet Concentration Plant A expansion project, in preparation for the exploitation of the Nataka deposit, and was being transported under PRM escort.

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