In Mozambique, Kenmare extends Moma rights under a tougher tax regime

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Editorial responsibility: Paul Arnaud DEGUENON, journalist and business development expert.

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The notification received on 29 October confirms the processing and export framework until 2044. The new terms combine tiered royalties, taxation of foreign services and local commitments.

Kenmare announced on 30 October that it had received, the previous day, the official notification of the renewal until 2044 of the processing and export rights associated with Moma in Mozambique. The Council of Ministers had approved these terms on 13 October. They concern Kenmare Moma Processing, while mining operations fall under a separate framework.

The royalty on gross revenues rises from the historical rate of 1% to 3% for 2025-2029, then to 4% for 2030-2034 and to 5% for 2035-2044. A withholding tax of 20% will also apply to services provided to the subsidiary from abroad, applicable from the date the amendment takes effect.

A tax trajectory revised after the dispute

This trajectory goes beyond the one described in the March communication. Kenmare recalled in it having proposed a gradual increase from 2.5% to 3.5%. The government resolution of July 2025 also planned to reach 3.5%, but as early as 2031. The October resolution replaces that text, whose terms had fuelled the dispute with the company.

The file dated back to a renewal application filed in September 2022. After the initial rights expired in December 2024, written confirmation from the government allowed operations to continue on the historical terms. In March, Kenmare notably contested restrictions on customs and VAT exemptions and considered seeking arbitration.

Industrial commitments and a local processing option

The new counterparts include at least 200 million dollars of industrial investment and 50 million dollars of social projects during the extension. According to Miningmx, which reports Tom Hickey's explanations to investors, the industrial envelope largely corresponds to normal maintenance and certain specific projects. It therefore does not constitute an entirely additional programme.

The state will also be able to buy up to 20% of annual production for local processing, at market prices and with notice normally set at two years. Kenmare said an amendment remains to be signed with the government, before its expected transmission to the Administrative Tribunal of Mozambique for the necessary formalities.

A tax trajectory revised after the dispute

Industrial commitments and a local processing option

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