The President of the Republic, Daniel Chapo, is going to renegotiate the contracts of the megaprojects that exploit natural resources in the country, because 20 years have passed and the country is no longer the same.

Daniel Chapo said that over the last 20 years Mozambique has undergone profound changes, including the interests, expectations and vision of its citizens with regard to the exploitation of mineral resources, which is why it will be necessary to take their specificities into account when it comes to renewing the contracts for mega-projects.

"There are contracts that were signed 20 years ago. I'll give you three examples: Mozal, Sasol in Inhambane and Kenmare in Nampula province. These contracts, 20 years after they were signed, we now need to renew," said Chapo.

The Head of State was speaking this Saturday in Nampula, at a press conference that marked the end of a three-day working visit to that northern Mozambican province.

"Mozambique is no longer the same as it was 20 years ago. We're not the same number of people, we don't think the same way, we don't have the same objectives, we don't have the same interests as we do today, there are changes and there are also challenges. So, because of this change, anywhere in the world, including Mozambique, when a contract needs to be renewed, the renewal clauses need to be discussed. What we are doing at the moment is discussing the clauses of the contract between the parties, so that the very same contract is not renewed," he explained, quoted by AIM.

Speaking specifically about Kenmare, which is waiting for the government to renew the contract, he said that in the process of negotiating the clauses of the contract there are interests to defend on both sides. "Naturally, Kenmare will try to defend its interests and the Mozambican government, for its part, will defend the interests of the Mozambican people."

"In this defense, we're taking our time, which seems like a long time, but it's not. Kenmare is defending its interests, because it is an investor and wants a return on its investment," said the Head of State.

According to Chapo, issues related to Kenmare's social responsibility towards the communities where it develops its projects also come into this equation, a situation that recommends caution.

"You also know that in the Larde district we have challenges related to the corporate social responsibility of local communities. Our friends in the media have been there and heard local communities complaining about the level of corporate social responsibility. We have challenges related to local content, so they go hand in hand with the challenges that are related to the interests of local content in mega-projects at national level," he noted.

Chapo also said that there is also a need to defend national interests in the place where the projects are being developed.

Regarding the renewal of the contract with Kenmare, Chapo said that the government is negotiating peacefully with Kenmare and, at any time, the contract will be submitted to the Council of Ministers as soon as the parties feel they have reached an agreement.

"The contract will certainly be renewed, but because there is no conflict and no problem, Kenmare has never stopped operating. It continues to operate because the contract is being negotiated peacefully between the two parties, it's a negotiation that is being done peacefully," he concluded.

It should be noted that Kenmare is the world's largest supplier of lighting and the third largest supplier of titanium, an important resource for the aeronautical industry, and its main destinations are China, the United States, Europe and Saudi Arabia.

Meanwhile, Kenmare's operating contract ended in December 2024, when it completed its 25-year term. Kenmare's intention is to secure a contract for another two decades.