Mozambique will renegotiate with megaprojects prior to contract renewals – Watch

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Mozambique will renegotiate with megaprojects prior to contract renewals – Watch

11:24 CAT | 31 Mar 2025

Screen grab: @basiliomuhate/X

Mozambique’s president, Daniel Chapo, said on Sunday he wanted to renegotiate the contracts for the megaprojects that exploit the country’s resources, claiming that after 20 years Mozambique was no longer the same or thought the same way.

“Mozambique is no longer the same as it was 20 years ago. We’re not the same people, we don’t think the same way, we don’t have the same goals, we don’t have the same interests. Times have changed, wills have changed and challenges have also changed,” said the head of state, on Saturday in Nampula province.

“Because of this change, anywhere in the world, including Mozambique, when a contract needs to be renewed you have to discuss the clauses for renewing the contract. And that’s what we’re doing at the moment, discussing the clauses of the contract renewal between the parties so that we do not renew the exact same contract,” he explained.

First and foremost, 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, came to an end on 21 December. The Australian mining company continued to operate while negotiations to renew the contract with the government took place, after several months, with no outcome.

“It seems like a delay, but it’s not a delay as such. There are contracts in Mozambique that were signed 20 years ago. I’ll give just three examples. I could give several. I’ll give the example of Mozal [aluminium smelter]. And I’ll give the example of Sasol [gas ]][in Inhambane [province], I’ll give the example of Kenmare, here in Nampula province. 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 15 January, recalled that there are “interests to defend on both sides” when defining the contractual clauses, highlighting the concerns of the population with “corporate social responsibility” or the incorporation of local content.

“Kenmare is trying to defend its interests and we, as Mozambique’s government, are trying to defend the interests of the Mozambican people. And in this defence of the interests of the Mozambican people, we’re taking our time, which seems like a long time, but it’s not a long time. It’s really the fact that Kenmare is defending its interests, because it’s an investor, it has to get a return on its investment,” he stated.

He therefore insisted that defending the “national interest” in these renegotiations is in the “interest of the people”.

“That’s why we’re currently negotiating peacefully with Kenmare, and at any time, the contract will go back to the Council of Ministers. And if both parties feel that their interests are satisfied, the contract will be renewed. But because there is no conflict or problem, Kenmare has never stopped operating. It has continued to operate because the contract is being negotiated peacefully by the two parties. They don’t stop operating because we think it’s a completely peaceful negotiation,” concluded Chapo.

ALGUNS CONTRATOS DOS MEGA PROJECTOS DE MOÇAMBIQUE SERÃO REVISTOS PARA BENEFICIAR O POVO

“Quero deixar claro, Moçambique 🇲🇿 já não é o mesmo de 20 anos atrás, nem somos a mesmas quantidade de pessoas, nem pensamos da mesma forma,”. – Daniel Chapo, Presidente da República. pic.twitter.com/vVX0IFFWHm

— Basilio Muhate (@basiliomuhate) March 31, 2025

Lusa reported this week that Kenmare’s profits, which operate the Mozambican Moma mine, fell by 50% in 2024 to $64.9 million (€60.2 million), according to information from the mining company to the markets.

The Moma mine contains reserves of heavy minerals, including titanium, ilmenite, and rutile, which are used as raw materials to produce titanium dioxide pigment, as well as zircon, a relatively high-value zirconium silicate mineral.

The mining company announced in April 2023 that it planned to explore a new lode on the Moma concession within two years, signalling the mine’s longevity and profitability.

According to the company, exports from the Moma mine grew by 4% in 2024, with shipments of various finished minerals totalling 1,088,600 tonnes (heavy sands, zircon, ilmenite, and rutile), mainly in the second half of the year.

Source: Lusa