The Kenmare company, which operates heavy sands in northern Mozambique, has handed over 17.1 million dollars to the government in contractual taxes for the year 2022, it announced today.

The report that includes the figures was drawn up under the transparency laws of the European Union (EU), the United Kingdom and Ireland, on whose financial markets its shares are traded (London Stock Exchange and Euronext Dublin).

"Disclosure of payments to public administrations is required in relation to the prospecting, discovery, development and extraction of minerals," so the payments included "refer to the group's extraction and processing activities at the Moma mine in Mozambique," the document reads.

Most of the amount (10.6 million dollars) was handed over as royalties, i.e. "payments to a government for the rights to extract minerals or other materials, charged on the basis of production levels or revenues".

In this case, Kenmare has formalized a local firm that handles the extraction and that "is subject to a mining royalty of 3%" based on the heavy ore concentrate (HMC) sold.

The processing and export is then carried out on behalf of another company, which pays a royalty of 1% on the revenue.

Kenamre also paid 6.1 million dollars in taxes and 409 thousand dollars in fees. The calculations are detailed in the report released today.

The company announced in April that it plans to explore a new lode within two years, within its Moma concession, signaling the mine's longevity and profitability.

The mining company says it continues to expect "robust demand for all products" after achieving record financial performance in 2022.

Kenmare is one of the world's largest producers 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 heavy minerals in paints, plastics and ceramics.

Source: Lusa