Maputo, July 27, 2026 (Lusa) - The mining company Kenmare, which operates one of the world's largest titanium mines in Mozambique, remains intent on renewing the Moma concession agreement, even as local ilmenite production fell by 40% in the second quarter.
In an operational update issued to investors, the Irish company said it was continuing to negotiate with the Mozambican government regarding the renewal of the Implementation Agreement (IA), which expired on 1 December 2024, and that it was keeping open the possibility of resorting to international arbitration while the parties work toward an agreement.
«During the second quarter, Kenmare continued to engage in constructive dialogue with the government of Mozambique. The company provided clarification on its financial proposal and investment intentions for the renewal period, including the social investments planned for the region, whilst continuing to operate under the previously existing terms,» the investor update stated.
The company says it continues to prioritise a negotiated solution, while also retaining the contractual mechanisms: «Kenmare remains committed to achieving a negotiated renewal of the Implementation Agreement in the short term, whilst reserving the right to safeguard its contractual rights, including through arbitration, should it not be possible to reach an agreement.» The discussions centre on the renewal of the agreement governing the fiscal and operational conditions of the Moma mine, in Nampula province, which expired on 31 December 2024.
The company, which has been operating the mine since 2007, had previously revealed that Mozambique's government intends to review the financial benefits associated with mining operations, including royalties and the industrial free zone regime, with the government arguing for a more favourable redistribution of the revenue generated by the mine.
In its July update, the company reiterates that the process does not affect mining operations as such and points out that the IA «grants certain rights and benefits» to Kenmare in relation to processing and export activities, as well as «unequivocal rights to renewal» of these, on identical terms.
However, operational activity at the Moma mine saw a 37% year-on-year decline in heavy concentrate (HMC) production to 225,000 tonnes in the second quarter, whilst production of ilmenite, the mine's main commercial product, fell by 40% to 147,200 tonnes, zircon production fell by 26% to 9,700 tonnes, and rutile production fell by 30% to 1,600 tonnes.
For the first half of the year, ilmenite production totalled 273,100 tonnes, 39% less than in the same period last year, whilst heavy concentrate production fell by 34% to 442,200 tonnes.
The company attributes the change primarily to lower ore grades at the Namalope mining front and to the ongoing modernisation of the WCP A unit, considered the operation's main mining facility; the company expects production to increase in the second half of the year, «as improvements at the WCP A unit continue and the WCP B unit performs better».
Kenmare acknowledged, however, that the unit's full commissioning is proceeding more slowly than anticipated.
Despite the production decline, the company managed to significantly increase exports by reducing the stockpiles at Moma.
Shipments of finished product rose by 53% in the second quarter to 277,700 tonnes, whilst in the first half of the year they reached 555,600 tonnes, 14% higher than in the same period of 2025.
According to the mining company, the target remains to export at least 1.1 million tonnes from Moma in 2026, although it has revised its ilmenite production forecast slightly downwards and now expects around 800,000 tonnes this year.
The Moma mine accounts for around 6% of the global supply of titanium minerals, according to the company, which estimates reserves sufficient for more than 100 years of mining.
PVJ/ADB // ADB.
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