Kenmare Resources and Mozambique settle Moma mine dispute

Kenmare Resources and the Mozambican government have signed a definitive agreement to resolve a nearly three-year dispute regarding the Moma heavy mineral sands mine in Nampula province. The settlement replaces a 2004 local development agreement and establishes new fiscal and social obligations for the mining operations.

Key terms of the agreement include a progressive royalty rate that will increase from 3% to a maximum of 5%, contingent upon international ilmenite prices. Additionally, 10% of the mine’s tax revenues, estimated between US$8 million and US$10 million annually, will be directed to the Nampula Local Development Fund. This fund will be administered at the provincial level and overseen by the Administrative Court.

Regarding social and environmental commitments, Kenmare has pledged to retain its 1,682 workers, 96% of whom are Mozambican nationals. The company also committed to completing a 15-megawatt solar power plant by 2027 to reduce diesel consumption. The settlement follows disputes involving claims by the Tax Authority for approximately US$30 million in unpaid taxes and royalties, as well as community complaints regarding underfunded development projects.