Mozambique's new mining law aims to boost local economic returns, as Kenmare Resources secures concession renewal for its Moma mine under revised terms.
Mozambique's mining reforms take shape
Mozambique's government has introduced new mining laws aimed at boosting the nation's economic gains from its mineral resources. These reforms, enacted in early June, include requirements for state involvement, local processing, and restrictions on exporting raw materials.Kenmare secures concession renewal
On October 30, Kenmare Resources, a British-based mining firm, received approval to extend its operations at the Moma mine in Mozambique. This agreement is one of the first to be implemented under the new law, which emphasizes increased state participation and local economic benefits.New revenue and production terms
The concession renewal includes higher revenue levies for the mine, increasing from 1% to 5% over the next two decades. Additionally, the government will be able to purchase up to 20% of the mine's annual output for local processing, though the 15% state ownership requirement does not apply to Moma.ENM's role in the mining sector
The Empresa Nacional de Minas (ENM), a new state-owned entity, was created in August to oversee mining projects and manage the allocation of mineral production. ENM aims to ensure the government's interests are represented and that local content requirements are met.Other mining projects face changes
Syrah Resources, which operates the Balama graphite mine with a 5% state stake, noted that its mining rights will expire in 2038. The company expects the new law's requirements to be clarified as the legislation is implemented, leaving uncertainty about how future agreements will be structured.
