Maputo, March 13, 2026 (Lusa) - The Mozambican government on Friday denied any dispute with the mining company Kenmare Resources, which operates the Moma titanium mine, and said that a renegotiation of the contract was underway, which it claims is aimed at ensuring a better distribution of resources.
“Kenmare is presenting its positions, its concerns and its limitations. The government is doing exactly the same thing, to bring the positions closer together and ensure that the exploitation of natural resources benefits both parties as much as possible. That is all that is under discussion,” said government spokesperson Inocêncio Impissa, responding to questions from journalists today in Maputo.
“The stages, the sequence, the legal framework for this purpose – these are the different phases that the negotiation process may naturally go through. There is nothing unusual for us so far,” he stated.
Kenmare stated on 9 March that the Mozambican Tax Authority (AT) is unilaterally imposing new conditions, reserving the right to resort to international arbitration.
In his remarks, Inocêncio Impissa emphasised that Kenmare “had a period of time” to establish itself in the country, benefiting from “various facilities” to “consolidate its business”, including a specific tax and customs regime.
“We need to rethink and renegotiate certain terms that allow that business to continue, whilst ensuring the country continues to benefit and now benefits slightly more,” he noted, acknowledging that, with the concession due to end in 2024, the Government “has decided to establish a new regime”.
“Therefore, it has withdrawn the tax protection regime for the entity. This implies, in other words, that the company will, hypothetically, start paying all the taxes it previously did not pay, on the goods it imports and so on. And this naturally also allows us to share more effectively the profits that were previously paid as royalties to Mozambique, from around 1.5% to what the State or the Government has proposed for this purpose,” he explained, adding that Kenmare is also advocating for “the environment that is most favourable to it”.
Quoted in a statement previously sent to investors, Kenmare’s director, Tom Hickey, states that the Implementation Agreement (IA) for the operation, which expired in 2024 and remains to be renewed, "is fundamental to the long-term success of Moma" and complains that the tax authority is attempting to increase royalty charges without a new IA, with the mine operating under a temporary regime.
“We are very concerned about the recent attempt by tax authority in Mozambique to impose terms that were not mutually agreed with Kenmare. This action contrasts with the outcome of a meeting with several ministers (...), where it was agreed that we would work together to conclude negotiations by 20 March,” adds Hickey.
In the investor update, Tom Hickey explains that the proposal submitted to the Government in April 2025 for the new IA “included several concessions”, reflecting the “commitment to an equitable distribution of value from Moma and to substantial ongoing investment” in the operations and local communities over 40 years.
“We would be disappointed to have to resort to arbitration to enforce our contractual rights. However, we may be forced to do so if we are unable to reach a timely agreement,” he says.
Kenmare states that it has proposed an increase in the royalty rate from 1% to 2.5%, the application of withholding tax on payments to non-Mozambican service providers from abroad, and additional investments and contributions to community projects during the 20-year extension period.
This proposal was revised in April 2025 to include a phased increase in the royalty rate from 2.5% in 2025 to 3.5% over the course of those 20 years. However, according to the company, at a meeting of the Cabinet in July 2025, an "internal resolution" was adopted setting out "terms for renewal" that "had not been agreed" and "differ significantly from Kenmare’s proposal", being "economically and operationally detrimental".
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