The Irish mining company Kenmare announced on Saturday, August 16, that it continues negotiations with the Government to renew the Moma mining agreement, one of the world’s largest titanium and zircon mines, with no agreement reached yet, eight months after the previous agreement ended, Lusa reported.
“Kenmare confirms that it is still in negotiations with the Government of Mozambique and that the final terms for the renewal have not yet been concluded. Operations at Moma continue as usual and have not been affected by the discussions,” the company stated in a market notice, thus denying reports that a new Moma Implementation Agreement (IA) had already been signed.
The statement added that it has been “conducting the renewal process with the Government since the end of 2022,” and is “discussing possible changes” to the IA that expired at the end of last year.
“Although the original expiration date was December 21, 2024, the Ministry of Industry and Trade confirmed that Kenmare’s existing rights and benefits remain in full force and effect, awaiting the completion of the renewal process,” the document noted.
The mining company recalled that the IA is an agreement signed in 2002 between Kenmare and the Government, establishing the terms under which it conducts mineral processing and export activities. It granted “rights and concessions for an initial period until December 2024, with the right to extend for another 20 years.” In March of this year, President Daniel Chapo, inaugurated in January, stated that he intends to renegotiate contracts for megaprojects exploiting the country’s resources, arguing that 20 years later, Mozambique is no longer the same or thinks the same way.
“Mozambique is no longer the same as it was 20 years ago. We are not the same in population, in mindset, objectives, or interests. Times change, priorities change, and so do challenges,” the head of state told journalists, citing Kenmare’s operations as an example.
On June 13, Chapo met in Maputo with Kenmare’s CEO, Tom Hickey, to discuss the future of the company’s investments in northern Mozambique.
“We had the opportunity to meet with the President today to discuss Kenmare’s investment history in Mozambique and our future investment plans, as well as our strategies to continue investing in the country in the coming decades,” Hickey said after the meeting.
Irish company Kenmare has been in Mozambique for over 30 years and operates the Moma mine, one of the world’s largest producers of titanium and zircon, located in Nampula province.
“We believe the partnership between Kenmare and Mozambique has been good, and we will seek to renew it in the years ahead (…) the President was very open (…) and he understands our business. He has worked in Nampula and knows our mine and has visited it. Therefore, he has a good understanding of the importance of what we do and the nature of our investment,” added Tom Hickey.
In 2024, Kenmare’s profits fell 50% to $64.9 million, the company previously reported in a market notice.
The statement added that revenue from Moma products fell 10% in 2024 to $392.1 million “due to a 14% reduction in the average price received for Kenmare products, partially offset by a 4% increase in shipments.”
Kenmare is one of the world’s largest producers of mineral sands, listed on the London and Dublin stock exchanges, with production in Mozambique representing approximately 7% of global titanium raw materials, serving customers in more than 15 countries, which use its heavy minerals in paints, plastics, and ceramics.
Source: Diário Económico