Kenmare Resources: No 'tax benefits' from firms in Mauritius

Kenmare Resources: No 'tax benefits' from firms in Mauritius

Irish stock market-listed mineral exploration company Kenmare Resources has said it does not benefit from low corporate tax rates in Mauritius after two of its affiliate companies were included on a list of companies linked to the African island nation.

The entities - Kenmare Moma Mining Mauritius Ltd and Kenmare Moma Processing Mauritius Ltd - were included on a long list of companies published by the International Consortium of Investigative Journalists, or the ICIJ, which were incorporated in Mauritius.

Kenmare has no mining operations in Mauritius, but it operates one of the world's largest mineral mines in Mozambique.

The mining company - which has its shares listed on the Irish and London stock exchanges - operates the Moma titanium mine in Mozambique and directly employs 1,400 people at the extensive site.

The mine produces 7% of the world’s ilmenite - the main source of titanium metal - and titanium dioxide, which is used as a white pigment in paint.

It also produces 4% of the world’s zircon, a source of zirconium metal.

The company said its subsidiary companies are registered in Mozambique and that it pays taxes in that country.

It said it has invested $1.2bn (€1.1bn) in the Mozambique mine and paid the Mozambican government more than $83m between 2013 and 2018.

"Kenmare operates the Moma mine and associated facilities in Mozambique through two subsidiary project companies," a Kenmare spokesman said.

Both are registered as branches in Mozambique and, accordingly, pay all taxes due in Mozambique.

The company spokesman said all tax payments are reported publicly each year and the Mauritian companies "do not confer - and never have conferred - any tax benefits on Kenmare".

"The project companies were incorporated in Mauritius, as lenders required an African jurisdiction with an appropriately functioning and efficient common law regime," the spokesman said.

Kenmare is set to pay its first ever dividend to shareholders, in October, based on a significant increase in revenues and profits last year.

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