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Mozambique to Renegotiate Mega Projects

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Five-Year Government Programme (PQG) 2025-29

(3 Minutes Read)

The Mozambican government will renegotiate contracts involving megaprojects that exploit the country’s mineral resources, as provided for in the Five-Year Government Programme (PQG) 2025-29, approved by parliament.

Mozambique’s government reaffirmed its intention to renegotiate contracts with megaprojects underway in the country. A government source pointed out that the circumstances that were previously discussed have changed.

The official was questioned in Maputo about Mozal’s contributions to the state. Mozal operates an aluminium smelter in the province of Maputo, southern Mozambique. He said that these contributions were without “errors or flaws” and explained that they were within the context in which the contract was negotiated. He further said that Mozal has been paying the Mozambican state taxes of one billion meticais (€13.7 million) annually since 2020.

The Mozambican government will renegotiate contracts involving megaprojects that exploit the country’s mineral resources, as provided for in the Five-Year Government Programme (PQG) 2025-29, approved by parliament.

The document states that “Renegotiating concession and natural resource exploitation contracts” is one of the objectives of the Macroeconomic Stability Programme, which is part of the PQG.

Mozambican President Daniel Chapo has previously stated that he will renegotiate contracts for megaprojects that exploit the country’s resources, arguing that 20 years later, Mozambique is no longer the same and does not think in the same way.

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Mozal is an international consortium that has been operating an aluminium smelter in the province of Maputo, southern Mozambique, since 2000. The smelter produces aluminium mainly for export. Opened in 2000, Mozal is 47% owned by BHP Billiton, with the remaining shares held by Mitsubishi (25%), IDC (24%), and Mozambique’s government (4%). It is considered the first major private investment in the country since independence (1975).