MOZAMBIQUE · CRITICAL MINERALS
Key Facts
- —The country Mozambique is a south-eastern African country on the Indian Ocean, known for natural gas, coal, aluminium and mineral sands. President Daniel Chapo, in office since January 2025, leads it.
- —What happened On Monday 19 October, the Ministry of Mineral Resources and Energy announced the formal end of Mozambique’s dispute with Kenmare Resources, which runs the Moma titanium mine.
- —The tax claim The tax authority had demanded about US$30 million in capital gains tax and royalties for 2019 to 2022, a claim Kenmare contested.
- —The new terms The royalty becomes progressive, rising up to 5% with the ilmenite price, and 10% of the mine’s tax revenue goes to Nampula province.
- —Jobs and power Kenmare is to keep 1,682 workers, 96% of them Mozambican, and finish a 15-megawatt solar plant by 2027.
- —The mineral Ilmenite is a titanium ore used to make white pigment for paints, plastics and ceramics, and Kenmare says Moma supplies about 6% of world titanium.
- —Still open Kenmare’s own account of the terms, and whether the US$30 million claim is paid or dropped.
The Mozambique titanium tax dispute is over, the government said on Monday 19 October, ending a fight with Kenmare Resources that began in 2023. The tax authority had demanded about US$30 million from the miner, which says its Moma mine supplies about 6% of the world’s titanium.
Kenmare, listed in London and Dublin, sells ilmenite that ends up in paints, plastics and ceramics. The Mozambique titanium tax deal also comes while a bidder from the United Arab Emirates weighs a takeover offer.
What the Mining Ministry Announced
The Ministry of Mineral Resources and Energy announced on Monday 19 October the formal close of the Mozambique titanium tax dispute with Kenmare Resources. The Maputo daily Notícias carried the statement, and the English-language site Club of Mozambique reported the same terms.
Kenmare holds the concession for the Moma mine, a heavy mineral sands operation in the Larde district of northern Nampula province. The new agreement replaces the 2004 local development agreement, the ministry said.
A Three-Year Fight Over Tax and Royalties
Since 2023, the tax authority’s Mozambique titanium tax claim stood at about US$30 million in capital gains tax and royalties for 2019 to 2022. Kenmare disputed the sum, arguing that it had used international market reference prices.
In March, Kenmare warned it might seek international arbitration after the tax authority tried to impose terms the company said it had not agreed. The government denied a formal conflict, saying the talks sought a fairer split of mineral benefits, according to 360 Mozambique, a Maputo business site.
The mine’s original rights under its Implementation Agreement, the contract that sets its tax and export terms, expired in December 2024. Operations continued under written government confirmations while the two sides negotiated, Mining Weekly reported.
President Daniel Chapo said in March 2025 that he would renegotiate major contracts, and he met Kenmare’s chief executive Tom Hickey in Maputo that June. On Thursday 15 October, Kenmare’s third-quarter report still called renewing its agreement a priority.
New Royalty, Local Fund, Jobs and Solar Power
The new framework follows Mining Law No. 7/2026, and its royalty is progressive, reaching up to 5% with the world price of ilmenite. The ministry also said 10% of the mine’s tax revenue will go to the Nampula Local Development Fund.
That fund is expected to receive between US$8 million and US$10 million a year, Notícias reported. The provincial government will run it, and the Administrative Court, which audits public spending, will check the accounts.
Kenmare committed to keep its 1,682 workers, 96% of whom are Mozambican. It will also finish a 15-megawatt solar plant by 2027 to cut its use of diesel.
Villages Near the Mine and a Spending Gap
Residents of Topuito and Pilivili, two communities near the mine, had complained that the company’s Community Development Fund was not being honoured. The Inspectorate-General of Mineral Resources, the state mining inspector, found that only 42% of the US$12 million planned had been spent.
The money went to schools and water boreholes, according to Notícias. The statement does not say how the unspent balance will now be handled.
A Takeover Bid Adds to the Stakes
On 7 October, RTP, Portugal’s public broadcaster, reported that Emirati group International Resources Holdings proposed a non-binding cash offer for all Kenmare shares. The same group is in a separate dispute with Zambia’s state mining holding company over the Mopani copper mines.
Under Irish takeover rules, the bidder must say by Tuesday 17 November whether it will make a firm offer or walk away. No price has been disclosed.
Kenmare’s third-quarter report on 15 October showed ilmenite output of 233,600 tonnes, up 12% from a year earlier. It cut its 2026 forecast to 710,000 to 750,000 tonnes from about 800,000, citing delays at a new processing plant.
What It Means for US Readers
Titanium minerals from mines such as Moma are turned into the white pigment found in paints, plastics and ceramic tiles sold in American shops. A settled Mozambique titanium tax regime makes Moma’s supply and costs easier to predict for the companies that buy from it.
Investors who follow Kenmare now have a clearer view of the mine’s tax bill ahead of the Tuesday 17 November takeover deadline. The Mozambique titanium tax deal also shows a government rewriting its terms with foreign investors, as set out in our guide to the country.
What Is Not Known
The ministry statement carries no comment from Kenmare. It does not say whether the US$30 million claim will be paid, reduced or dropped.
The royalty rate at the ilmenite price on 20 October is unstated, as is the handling of the unspent community money. The bidder’s firm offer, or its withdrawal, is due by Tuesday 17 November.
More: Mozambique news in English, every day from The Rio Times.
Frequently Asked Questions
What did Mozambique announce about Kenmare?
On Monday 19 October, Mozambique’s mining ministry announced the formal end of its dispute with Kenmare Resources, the company behind the Moma titanium mine. The agreement replaces the 2004 local development agreement.
Who is Kenmare Resources?
Kenmare is a titanium minerals producer with its headquarters in Dublin and its shares listed in London and Dublin. It runs the Moma mine in Nampula province, which produces ilmenite, rutile and zircon.
How big was the Mozambique titanium tax claim?
The tax authority claimed about US$30 million in capital gains tax and royalties for 2019 to 2022. Kenmare disputed the figure, saying it had used international market prices.
What are the new royalty and fund terms?
The royalty is progressive and can reach 5%, depending on the ilmenite price. Ten per cent of the mine’s tax revenue goes to Nampula’s local development fund, estimated at US$8 million to US$10 million a year.
Why does the Mozambique titanium tax deal matter outside Africa?
Ilmenite is the raw material for white pigment used in paints, plastics and ceramics worldwide. The Mozambique titanium tax deal also comes as a bidder from the United Arab Emirates weighs an offer for Kenmare.
Sources: Notícias, 19 October 2026; Club of Mozambique, 19 October 2026; 360 Mozambique, 19 October 2026; RTP, 7 October 2026; Mining Weekly, 9 March 2026; Kenmare Resources, Q3 2026 Production Report, 15 October 2026.
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