Kenmare Resources (LSE:KMR) confirmed on Friday that Mozambique's Council of Ministers has approved the renewal of key rights and concessions under the Implementation Agreement (IA) governing its Moma mine until 2044, alongside revised economic and commercial terms.
The junior miner, which operates the Moma titanium minerals mine in northern Mozambique and produces ilmenite, zircon and upgraded concentrates, has been operating under legacy terms since the original 20-year authorisation period for its subsidiary Kenmare Moma Processing's mineral processing and export activities expired in December 2024.
The royalty rate payable on gross revenues rises from the current 1% to 3% for 2025 to 2029, 4% for 2030 to 2034, and 5% for 2035 to 2044, alongside a new 20% withholding tax on services provided to the subsidiary from outside Mozambique once an addendum reflecting the extension takes effect.
As part of the extension, Kenmare Moma Processing has committed to invest at least $200 million in plant, machinery and infrastructure over the 20-year period, to permit the Mozambique government to purchase up to 20% of the subsidiary's annual production at market prices with two years' advance notice, and to fund $50 million of social and corporate responsibility projects covering education, health, transport, energy, water and sanitation.
"Kenmare is delighted that the extension of its rights and concessions under Moma's IA has been approved," said managing director Tom Hickey, adding that the company has "agreed some changes to the applicable investment regime, which strike an appropriate balance between Kenmare's interests and increased contribution to Mozambique."
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The internal resolution, adopted on 13 October and notified to Kenmare on 29 October, updates and replaces the Council of Ministers' prior resolution from July 2025, whose terms Kenmare had disclosed in a regulatory announcement on 9 March. It also grants Kenmare Moma Processing the right to seek a further 20-year extension in 2044 under whatever legal framework applies at that time.
Kenmare is now liaising with the Mozambique government on signing an addendum to the Implementation Agreement, which will then be submitted to the Administrative Court of Mozambique to complete the remaining administrative procedures.