PRESSURE is likely to remain high on the share prices of Mozambique miners Kenmare Resources and Gemfields Group as tensions remain high in the southern African nation.
According to newswire AFP, as many as 280 people have been killed in Mozambique owing to protests against election results in October which returned Daniel Chapo of the Frelimo party to another term as president.
Followers of opposition leader Venancio Mondlane, who rejects the results, say the results were rigged. Chapo’s party has been in power for about 50 years. The deaths have been blamed on government security forces.
Gemfields said on December 24 that two people near its Montepuez ruby mine in northern Mozambique had been killed following protests in which more than 200 persons staged an attempt to invade the MRM village.
Kenmare Resources said its Moma mine had been unaffected by violence but it said there had been protests in the mine’s vicinity. So far, the mine has produced titanium minerals uninterrupted; in fact, it had been operating “comfortably exceeded minimum production guidance in respect of all products for 2024″.
Despite this, shares in the company were 11% weaker in the last 30 days while Gemfields Group shares are about 19% lower over the period.
For Kenmare, investors will be concerned regarding the renewal of an implementation agreement relating to the Moma mine. The agreement, which governs the fiscal and other terms of the Industrial Free Zone in which the mine operates (but not actual mining), expired on December 21.
Gemfields’ problems are of a more urgent nature. The company stopped production on December 24 – with a view to restarting before the end of the year – while it temporarily relocated some staff to offsite locations.
MRM maintained a sizeable presence on site of more than 500 persons across employees, contractors and security components. The temporarily relocated personnel began a phased return on 26 December 2024,” the company said.
It was reported by BusinessLive on December 30 that South African president Cyril Ramaphosa sent security adviser Sydney Mufamadi to Mozambique as a special envoy to discuss escalating post-election violence there that is threatening regional stability.
South Africa’s National Joint Operational & Intelligence Structure (NatJoints) said in a statement that it had intensified operations at the South African-Mozambique border to prevent and combat “any opportunistic crimes” that may arise as a result of the unrest.
“The government recognises the interconnected nature of regional security and is determined to uphold its responsibilities in fostering peace and stability in Southern Africa,” it said.
Meanwhile, Mondlane has called for unity. “We must find ourselves again as Mozambicans,” he said in a report by the BBC. He fled Mozambique in October after two aides were shot dead.
In his latest address, he urged people to “cook and socialise” in their neighbourhoods, before a new wave of protests begin on 2 January.
“I am ready to lose my life for this fight,” said Mondlane in the BBC report.
He previously said he will install himself as president on 15 January – the day Chapo is due to be sworn in – despite the constitutional court upholding his rival’s victory.
It is unclear how Mondlane intends to take office, given he is in self-imposed exile, said the BBC.
