Mozambique: Government Approves 20-Year Extension for Kenmare's Mining Operations

What the report says

Mozambique’s cabinet has approved a 20-year extension for Kenmare Resources’ mining operations in the country, according to a report carried by AllAfrica from AIM. The Irish company has been extracting heavy mineral sands in the Moma and Larde districts of Nampula province in northern Mozambique, and the reported extension would keep the processing and export agreement in place until 2044.

The article says the arrangement comes with revised fiscal terms. Royalties based on gross revenue are set to rise in stages over the extension period, and some services contracted abroad will be subject to withholding tax. Kenmare also said it would commit to investing at least $200 million in equipment and infrastructure, plus another $50 million for social projects.

The report notes that Mozambique could buy up to 20% of annual production at market prices for local processing. The addendum still needs to be signed and submitted to the Administrative Tribunal for legal review, even though company officials described the move as an administrative step rather than a fresh negotiation.

The concession itself remains valid until August 2029, separate from the processing and export agreement. The article also says the deal allows for a possible further 20-year extension beginning in 2044, depending on the laws then in force.