The government has confirmed the formal closure of the dispute with Kenmare Resources, the concession holder for the Moma heavy mineral sands mine in Larde district, Nampula province.
The announcement was made by the Ministry of Mineral Resources and Energy (MIREME), through a statement referring to the signing of a definitive settlement agreement that replaces the 2004 local development agreement.
One of the agreed points concerns Kenmare’s commitment to retain its 1,682 workers, 96% of whom are Mozambican, and to complete the new 15-megawatt solar power plant by 2027 in order to reduce diesel consumption.
The agreement thus brings an end to almost three years of tense negotiations over tax and social obligations.
Since 2023, the Tax Authority (AT) had been claiming around US$30 million from the mining company in capital gains taxes and royalties that had been incorrectly calculated between 2019 and 2022. The company disputed the claim, arguing that it used international market reference prices.
At the same time, communities in Topuito and Pilivili complained that the Community Development Fund obligations had not been met. The Inspectorate-General of Mineral Resources found that only 42% of the US$12 million earmarked had been spent on schools and water boreholes.
According to MIREME, the new framework, already aligned with Mining Law No. 7/2026, provides for the progressive royalty rate to rise from a fixed 3% to up to 5%, depending on the international price of ilmenite.
The new legislation also provides for 10% of the mine’s tax revenues to go directly to the Nampula Local Development Fund, managed by the province and audited by the Administrative Tribunal, with annual revenue estimated at US$8 million to US$10 million.
Source: Notícias