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Mozambique: Kenmare paid $17.1M in taxes, royalties in 2022
10:45 CAT | 12 May 2023
FILE - Kenmare operates the Moma Titanium Minerals Mine, located on the north east coast of Mozambique. The Moma Mine contains deposits of heavy minerals which include the titanium minerals ilmenite and rutile, as well as the zirconium silicate mineral, zircon. [File photo: Courtesy of Kenmare Resources]
Kenmare Resources, a mining company that extracts heavy sands in northern Mozambique, has handed over more than $17.1 million to the government in taxes, royalties and fees during 2022, the company announced on Thursday in its ‘Report on Payments to Governments’.
The report including the figures was drafted under transparency laws of the European Union and of the UK and Ireland, on whose financial markets its shares are traded (London Stock Exchange and Euronext Dublin).
“Disclosure of payments to governments is required in respect of payments arising from the exploration, discovery, development and extraction of minerals” the document reads, explaining that “the payments included within this report therefore relate to the Group’s mining and processing activities at the Moma Mine in Mozambique.”
Most of the amount ($10.6 million) was in the form of royalties, that is payments to a government for the rights to extract minerals or other materials, charged based on production levels or revenues.
In the case, Kenmare has set up a local subsidiary that handles the extraction and which “is subject to a 3% mining royalty” based on the heavy mineral concentrate (HMC) sold. Processing and export is done by another firm, which pays a 1% royalty on its revenues.
Kenamre has also handed over $6.1 million in taxes and $409,000 in fees, states the report.
The company announced in April that within two years it planned to explore a new lode within its Moma concession, signalling the longevity and profitability of that mine.
It foresees “robust demand for all products” after achieving a record financial performance in 2022.
READ: Mozambique: MISAU and Kenmare partner to build Larde District Hospital
Kenmare is one of the world’s largest miners of mineral sands, listed on the London and Dublin stock exchanges, with production in Mozambique accounting for approximately 7% of global titanium raw materials.
The company supplies customers operating in more than 15 countries who use the heavy minerals in paints, plastics and ceramics.
Source: Lusa
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