The government of Mozambique denied any dispute with Kenmare, which operates the Moma titanium mine in Nampula, and confirmed an ongoing contract renegotiation aimed at ensuring a better distribution of resources.
“Kenmare is presenting its positions, concerns, and limitations. The government is doing the same, to bring positions closer and ensure that natural resource exploitation benefits both parties fairly. That is the scope of the discussion,” said government spokesperson Inocêncio Impissa on Friday (13) in Maputo.
Impissa highlighted that Kenmare “had a period to establish itself in the country,” benefiting from various incentives, including a special tax and customs regime. With the concession ending in 2024, the government introduced a new regime, removing fiscal protections and ensuring the state shares more equitably in royalties, which previously amounted to around 1.5%.
Kenmare director Tom Hickey stressed that the Implementation Agreement (IA), expired in 2024 and still pending renewal, is “crucial for Moma’s long-term success.” He criticized the Tax Authority (AT) for trying to unilaterally increase royalties under a temporary regime, noting that failing a timely agreement may force the company to seek international arbitration.
The company had proposed raising royalties from 1% to 2.5%, applying withholding taxes on payments to foreign service providers, and additional community investments over a 20-year extension. In April 2025, this was revised to a phased increase from 2.5% to 3.5%. However, a July 2025 Cabinet resolution set “renewal terms” that Kenmare considers “economically and operationally harmful.”
Source: Lusa
