Mozambique Extractive Industry: Mining Resources accounted for 15% of tax revenues last year

Mozambique Tax Authority CEO, Rosário Fernandes

Mozambique Tax Authority CEO, Rosário Fernandes

The contribution of mining resources to Mozambique’s total tax revenues has risen significantly over the last four years, from 2 percent in 2010 to 15 percent of all taxes collected in 2013, Mozambique’s Mining Minister said in the country’s parliament.

According to Esperança Bias tax collected on mining activities by the Treasury totalled 18.2 billion meticals (US$583 million), said daily newspaper Notícias.

The revenues are mainly from exploration, since 2004, of natural gas in Pande and Temane, in Inhambane province, of heavy sands in Moma, exports of which began in 2007, and coal from Tete, sales of which began in 2011.

The Mining Resources Minister, who gave these figures to Mozambique’s parliament, said that in terms of coal there were currently seven concessions and that in 2013 3.8 million tons of coal was exported with a value of US$370 million.

This year, according to the minister, 6.5 million tons of coal is projected to be exported from Moatize in Tete province and that Asian countries will be the main markets for this coal.
The mining industry is also important for the country as it employs a large number of people and supports businesses.

Mining company Vale Moçambique employs 10,000 Mozambicans and has 1,100 suppliers of goods and services. Jindal Steel and Power Limited (JSPL) buys products from 150 small and medium-sized companies and spend around US$140 million per year and Rio Tinto paid Mozambican suppliers of goods and services US$295 million, which accounts for 77 percent of the operation’s total spending, according to figures Bias presented. (mhub/MZ)

 

Advertisements

This site uses Akismet to reduce spam. Learn how your comment data is processed.