Heavy mineral sands producer Kenmare Resources is in continued discussions with the Government of Mozambique over “certain modifications” to extend the Implementation Agreement which covers processing and export of the company’s products at the Moma mine.
A Kenmare spokesman said the Implementation Agreement was not related to the extension of mining operations currently underway into the Nataka ore zone which contains about 70% of the 9 billion ton mineral resource at the Moma mine and will keep the operation going for another 20 years or more.
The agreement should have been renewed by December 21 but was not approved by the Mozambican Council of Ministers “notwithstanding Kenmare’s clear right to such an extension.”
This was despite the company stating on October 27 that Kenmare believes that “Government representatives share its objective of concluding the renewal process before the December 21 renewal date without the need for recourse to the dispute resolution procedure provided for in the agreement.”
Kenmare stated in its March quarter production report that it “continues to engage constructively with the Government while reserving the right to safeguard its contractual entitlements via all means, including international arbitration.”
The company said it was now “discussing certain modifications to the applicable investment regime to obtain the agreement of the Government of Mozambique.”
The original version of this article stated the discussions affected the Nataka extension. The mistake is regretted.
