Lisbon, March 18, 2026 (Lusa) – Mozambique's President guaranteed today that negotiations are ongoing with Mozal, the country’s aluminium smelting company, which has been on shutdown for maintenance and conservation since Sunday, and the mining company Kenmare, regarding the continued operation of the Moma titanium mine.
"Regarding Kenmare and Mozal, what I can tell you at this moment is that negotiations continue," Daniel Chapo said today in Brussels, when questioned by journalists during the review of his four-day visit to Belgium.
According to Mozambique’s Head of State, the energy supply contract for Mozal - one of the largest in Africa, with over 1,000 direct and 4,000 indirect workers, which has been without production since Sunday, has ended, "and it is normal, when one wants to renew a contract, for the parties to sit down and discuss new terms and new clauses."
"It’s like someone who rented a house, right? For five years. Then there are inflation problems, the area might devalue, the house might have leaks and other issues (...), so the two parties sit down and find new ways to reach an agreement. What I can tell you is that, both with Mozal and Kenmare, even while we are here in Brussels, we continue to talk," he said.
Kenmare, which operates the Moma titanium mine in Nampula province, stated that Mozambique's Tax Authority (AT) is unilaterally imposing new conditions, stating it may resort to international arbitration. This position was later refuted by Mozambique's government, which stated that a contract renegotiation is underway aimed at ensuring a better distribution of resources.
Daniel Chapo said that, so far, neither party has broken off negotiations to pursue the "arbitration path," repeating that "the government continues to talk with Mozal, and Kenmare continues to talk with the government."
"We believe that within these negotiations, it is possible to find solutions. Absolutely, because it is through talking that people understand each other," he reiterated.
On 9 March, Kenmare Director Tom Hickey, cited in a briefing to investors, stated that the Implementation Agreement (IA) for the operation, which expired in 2024 and remains unrenewed, "is fundamental to the long-term success of Moma." He complained that the AT is attempting to accelerate the collection of royalties without a new IA in place.
In the investor briefing, Tom Hickey explained that the proposal submitted to the government in April 2025 for the new IA "included several concessions," reflecting a "commitment to an equitable distribution of value from Moma and to substantial continuous investment" in operations and local communities over 40 years.
Meanwhile, on Friday, Mozambique’s government denied any dispute with Kenmare, stating that a contract renegotiation is underway which aims to ensure a better distribution of resources.
"Kenmare is presenting its positions, its fears, and its limitations. The government is doing exactly the same thing, to bring 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, answering journalists' questions in Maputo.
Regarding South32, which holds 63.7% of Mozal, the company previously considered the energy tariff proposed to the Mozal aluminium smelter in Maputo as "totally unsustainable," thus justifying its closure. However, it did not rule out restarting Mozambique's largest industry if conditions change. On Monday, the Australian firm confirmed that Mozal has been on shutdown for maintenance and conservation since Sunday, anticipating costs of €52.4 million for the shutdown of the smelter, including redundancy payments for workers.
LCE/RYOL // AYLS
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