Maputo, May 21, 2026 (Lusa) – Kenmare Resources, the Irish mining company operating one of the world's largest titanium mines in Mozambique, is holding "constructive" negotiations with the Mozambican government to renew its concession, however, the firm insists it will resort to international arbitration if an agreement fails.
The Implementation Agreement (IA) regulating the fiscal and operational conditions of the Moma mine concession expired in December 2024. Nevertheless, the company continues to operate "under the previous terms" with government authorisation, based on a Kenmare investor presentation released this month.
The 2002 agreement included a renewal right. Negotiations have been ongoing for over a year as the government seeks to review the financial benefits derived from the mine in northern Mozambique.
"Reflecting the government's desire to increase revenues from Moma, Kenmare has submitted several proposals with enhanced terms," the investor communication stated. The document highlights high-level political contacts, including two meetings in 2025 between CEO Tom Hickey and Mozambique's President Daniel Chapo to stress the importance of a timely resolution for the company and the country.
Chapo "emphasised the importance of Moma to Mozambique" and expressed the government's intention to renew the agreement, though without defining a timeline for the conclusion of the process, Kenmare noted.
However, the mining company warned of an escalation of the dispute if talks fail. While the firm expects a conclusion in the short term, it "reserves the right to safeguard its contractual obligations, including through arbitration, if agreement cannot be reached".
Kenmare says that this dispute does not affect operational activity, as the IA "does not impact daily mining operations in any way". The agreement essentially regulates fiscal matters, royalty payments, which the government wants to revise upwards, and the industrial free zone regime, which the executive also plans to amend.
The company, listed in London and Dublin, says that "constructive discussions between the parties are ongoing" and remains focused on reaching an agreement.
Kenmare previously stated that Mozambique's Tax Authority (AT) is imposing new conditions. The government later refuted this position, stating that an ongoing contract renegotiation aims to ensure a better distribution of resources.
Mozambique's president commented on the case, saying in March that neither party has broken off negotiations to pursue arbitration. He said that the government continues to talk, whether with Kenmare or with Mozal, Africa's largest aluminium smelter located in Maputo, which suspended operations two months ago.
"We believe that within these negotiations it is possible to find solutions. Absolutely, because it is by talking that people understand each other," Chapo stated.
Kenmare guarantees that its Moma mine, in Nampula province, provides 6% of the global titanium supply, based on the presentation to investors. The concession has an estimated reserves horizon exceeding 100 years, and the firm claims to have invested US$875 million (€754.8 million) there.
Production at the mine, in terms of heavy mineral concentrate (HMC), fell 15% last year to 1,233,300 tonnes, while exports declined 13% to 947,900 tonnes.
Due to the current uncertainty, Kenmare has recorded impairments of US$301.3 million (€260 million) in its accounts, but forecasts total ore exports of 1.1 million tonnes for this year.
PVJ/RYOL // AYLS
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