Kenmare Resources announced on Thursday (17) that its operating license for the Moma mineral sands mine will be renewed by the Mozambican government before it expires on December 21. The company said that the authorities are committed to completing the renewal process on time, thus avoiding the need for litigation, according to Mining Mx.
The license renewal takes place in an electoral context, with the October 9 elections awaiting final results. Frelimo, the ruling party, is leading the provisional results in all 11 provinces, although the opposition has denounced irregularities and even called a strike. The electoral authorities have until October 24 to announce the final results.
Kenmare’s exploration license is governed by an implementation agreement that establishes the fiscal terms and benefits within the Industrial Free Zone where the company carries out its mining, processing and export activities. Although this agreement does not directly interfere with the mine’s day-to-day operations, it is crucial to ensuring an adequate legal and fiscal framework.
In operational terms, Kenmare reported a 14% drop in heavy mineral concentrate production in the third quarter of this year, totaling 355,400 tons. Titanium production also fell by 12% to 257,400 tons. However, primary zircon production increased by 4% compared to the previous year.
Despite the drop in production, sales showed a significant increase, with shipments 85% higher than in the same period last year, totaling 302,700 tons. This growth was attributed to better weather conditions and more efficient shipping times.
Tom Hickey, Kenmare’s managing director, pointed out that demand for all the company’s products was “encouraging” during the quarter, despite the operational challenges faced.
The company also reported a tragic incident, where a 75-year-old pedestrian was fatally struck by a pontoon transported by a road contractor. The equipment, which was part of an expansion project at Wet Concentration Plant A, was being transported under escort by the Police of the Republic of Mozambique (PRM).
