Mozambique: Renegotiation of megaprojects’ contracts in the PQG – Lusa

Login

Register

http://www.clubofmozambique.com/

Mozambique: Renegotiation of megaprojects’ contracts in the PQG – Lusa

2:11 CAT | 04 Apr 2025

File photo: Lusa

The Mozambican government will move forward with the renegotiation of contracts involving megaprojects that exploit mineral resources in the country, as provided for in the 2025-2029 Government Five-Year Plan (PQG).

“Renegotiating concession and exploration contracts for natural resources” is one of the objectives of the Macroeconomic Stability Program that is part of the PQG and that will be discussed over the next few weeks in the first ordinary parliamentary session of the legislature, which began on March 26.

“Promoting equity in the utilization of revenues from the exploitation of natural resources, with a focus on minerals and hydrocarbons” or “increasing efficiency in the collection and management of revenue and combating tax evasion” are other measures included in the program.

Mozambican President Daniel Chapo stated recently that he will renegotiate contracts for megaprojects that exploit the country’s resources, claiming that, 20 years later, Mozambique is no longer the same, nor does it think the same way.

“Mozambique is no longer the same as it was 20 years ago. We are not the same number of people, nor do we think the same way, nor do we have the same goals, nor do we have the same interests. Times change, desires change and challenges change too,” the head of state told journalists in Nampula on March 29.

“In light of this change, anywhere in the world, including Mozambique, when a contract needs to be renewed, it is necessary to discuss the clauses of the contract renewal. And that is what we are doing at the moment, discussing the clauses of the contract renewal between the parties so that the same contract is not renewed,” he explained.

The issue at hand is the fact that the concession for the Moma mine in Nampula, in the north of the country, one of the world’s largest producers of titanium and zircon, ended on 21 December, with the Australian mining company continuing after several months to operate while negotiations are underway to renew the contract with the government.

“It may seem like a delay, but it is not a delay as such. There are contracts in Mozambique that were signed 20 years ago. I will give just three examples, I could give several. I will give the example of Mosal [steel], I will give the example of Sazol [hydrocarbons], in Inhambane, I will give the example of Kenmare, here in the province of Nampula. And these contracts, after 20 years, we now need to renew,” he explained.

Regarding the negotiations with Kenmare, Daniel Chapo, who took office as President of the Republic on January 15, recalled that there are “interests to defend on both sides” in the definition of contractual clauses, highlighting as an example the concerns of the populations with “corporate social responsibility” locally or the incorporation of local content.

“Kenmare tries to defend its interests and we, as the Government of Mozambique, try to defend the interests of the Mozambican people. And, in this defence of the interests of the Mozambican people, we are taking this time that seems slow, but it is not. It is really the fact that Kenmare is defending its interests, because it is an investor, it has to have a return on its investment,” he acknowledged.

The priority, he said, is to defend the “national interest” in these renegotiations, which also represents the “interest of the people”.

“That is why we are currently negotiating peacefully with Kenmare and at any time the contract will return to the Council of Ministers. And if both parties feel that their interests are satisfied, the contract will certainly be renewed. But because there is no conflict, there is no problem, Kenmare has never stopped operating, it has continued to operate because the contract is being negotiated peacefully by both parties. They will not stop operating because we believe that this is a 100% peaceful negotiation,” President Chapo explained.

Source: Lusa