Kenmare Resources plc (LSE:KMR) has received approval from the Government of Mozambique to extend the processing and export rights associated with its Moma Titanium Minerals Mine until 2044, alongside revised royalty arrangements and additional investment commitments.
The company’s Implementation Agreement (IA), which governs mineral processing and export activities undertaken by its subsidiary Kenmare Moma Processing (Mauritius) Limited (KMPL), has been renewed following negotiations with the Mozambican authorities. Mining operations at Moma remain subject to a separate regulatory framework.
The Council of Ministers approved the extension on 13 October 2026, with Kenmare receiving official notification on 29 October.
Moma Royalty Rates to Increase Gradually to 5%
Under the revised agreement, royalties payable on gross revenue will increase from the existing rate of 1% to 3% for the period from 2025 to 2029.
The rate will subsequently rise to 4% between 2030 and 2034, before increasing to 5% for the period from 2035 to 2044.
The updated terms also introduce a 20% withholding tax on services provided to KMPL from outside Mozambique, effective from the date an addendum formalising the agreement comes into force.
Kenmare had continued operating under its previous terms following the expiry of the initial 20-year authorisation period in December 2024.
Kenmare Commits $200 Million to Investment and $50 Million to Community Projects
As part of the extension, KMPL has agreed to invest at least $200 million in plant, machinery and infrastructure over the 20-year period.
The company will also allocate $50 million to social and corporate responsibility projects covering education, healthcare, transport, energy, water, sanitation and opportunities for local businesses.
The revised agreement additionally allows the Mozambican government to purchase up to 20% of KMPL’s annual production for local processing at market prices, subject to two years’ advance notice or a shorter period agreed by KMPL.
Kenmare Managing Director Tom Hickey commented:
“Kenmare is delighted that the extension of its rights and concessions under Moma’s IA has been approved. With Mineral Resources to support production for over 100 years, we have always taken a long-term view on our operations and relations in Mozambique. Consequently, we have agreed some changes to the applicable investment regime, which strike an appropriate balance between Kenmare’s interests and increased contribution to Mozambique. The extension provides Kenmare with the certainty to continue to invest in Moma and support our host communities, while continuing to generate returns for all stakeholders.”
Agreement Provides Option for Further Extension in 2044
The government resolution also establishes KMPL’s right to obtain a further 20-year extension in 2044, subject to the legal framework applicable at that time.
The latest approval replaces an earlier Council of Ministers resolution issued in July 2025, which Kenmare had previously disclosed in March 2026.
Kenmare is now working with the Mozambican government to finalise and sign an addendum to the Implementation Agreement.
Following signature, the document is expected to be submitted to Mozambique’s Administrative Court to complete the relevant administrative procedures.
Investor Webinar Scheduled for 30 October
Kenmare will hold an investor webinar at 9:00 a.m. UK time on 30 October 2026 to discuss the revised agreement.
The presentation will be available to analysts, institutional investors and private shareholders through the Investor Meet Company platform, with participants able to submit questions during the session.
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