The Kenmare company, which explores heavy sands in Moma, in Mozambique’s northern province of Nampula, has handed over US$17.1 million to the government in contractual taxes for the year 2022.
According to the mining company announced this Wednesday, May 11, the report that includes the figures was drafted under laws on transparency of the European Union (EU), United Kingdom and Ireland, on whose financial markets its shares are traded (London Stock Exchange and Euronext Dublin).
“The disclosure of payments to public administrations is required in relation to the prospecting, discovery, development and extraction of minerals,” so the payments included “refer to the group’s extraction and processing activities at the Moma mine in Mozambique,” the document reads.
Most of the amount (US$10.6 million) was given as royalties, i.e., “payments to a government for the rights to extract minerals or other materials, charged based on production levels or revenues.
In the case, Kenmare has formalised a local firm that handles the extraction and “is subject to a 3% mining royalty” based on the heavy ore concentrate (HMC) sold.
Processing and export is then done on behalf of another firm which pays a 1% royalty on revenues.
Kenamre also handed over $6.1 million in taxes and $409,000 in fees.
The calculations are detailed in the report released this Wednesday.
Meanwhile, the company announced in April that it plans to explore a new lode within two years at its Moma concession, signalling the longevity and profitability of the mine.
The mining company says it continues to expect “robust demand for all products” after achieving record financial performance in 2022.
Kenmare is one of the world’s largest mineral sands producers, listed on the London and Dublin stock exchanges, with production in Mozambique accounting for approximately 7% of global titanium raw materials.
The company supplies customers operating in more than 15 countries who use the heavy minerals in paints, plastics and ceramics.