
KENMARE Resources said on Thursday the renewal of an implementation agreement that enables it to operate the Moma mineral sands mine in Mozambique would be renewed by the government before its expiry on December 21.
The renewal of the agreement is complicated by elections currently underway in the southern African country. As of Wednesday evening, Frelimo was leading provisional election results in all 11 provinces, according to a report by Reuters.
Meanwhile, opposition parties have cried fraud and one called for a strike. Mozambique’s electoral authorities have until October 24 to announce final results.
“Kenmare believes that Government representatives share its objective of concluding the renewal process before the 21 December renewal date, without the need for recourse to the dispute resolution procedures provided for in the agreement,” said Kenmare in a third quarter production update.
Frelimo’s presidential candidate Daniel Chapo was widely expected to win the October 9 election. The party has governed Mozambique since 1975 and has been consistently accused of rigging elections, which it denies.
Reuters cited election observers as saying that the poll did not meet international standards for democratic elections. The International Republican Institute, a US-based monitoring group, reported vote buying, intimidation, inflated voter rolls in Frelimo strongholds, limited transparency in result collation, and other issues.
The implementation agreement governs fiscal and other terms of the Industrial Free Zone, under which Kenmare conducts its mining, beneficiating and export activities. It does not govern or impact day-to-day mining operations, the company said.
In its update, Kenmare said third quarter production of heavy minerals concentrate fell 14% year-on-year to 355,400 tons. Titanium production was consequently lower, down 12% year-on-year to 257,400 tons. Primary zircon production rose 4%.
In terms of sales, however, shipments were 85% higher year-on-year. Totalling 302,700 tons, the increased volumes was due to shipment timings and improved weather conditions.
Tom Hickey, MD of Kenmare commented that there was “encouraging demand” for all of Kenmare’s products in the quarter. Hickey took over from previous MD Michael Carvill on August 15.
Kenmare reported an incident in which a 75-year old pedestrian was fatally struck by a pontoon that was being transported by a road haulage contractor. The pontoon, one of 20 that was delivered to a new site in terms of Kenmare’s project to upgrade Wet Concentrator Plant A in preparation for mining of the Nataka deposit, was travelling under escort by Mozambican police.