Mozambique is taking significant steps to strengthen control over its mining sector. From January, the French multinational SGS will begin the process of monitoring the quantities, prices and specifications of the minerals extracted and exported from the country. This initiative comes as a direct response to concerns raised about the loss of significant revenue owing to inaccurate declarations by mining companies.
According to statements by João Macaringue, deputy coordinator of the Economic Reform Office at the Ministry of Economy and Finance, quoted by the Lusa news agency, the Mozambican government found that mining companies frequently declared values lower than the real ones, especially for minerals with several specifications, such as heavy sands. This practice resulted in significant discrepancies between declared prices and real market values, causing heavy losses for the public purse.
The hiring of SGS, an internationally renowned company in the field of inspection and verification, is part of a set of measures adopted by the Mozambican Executive under the economic acceleration package (PAE), implemented in August 2022. This package aims to promote economic stability and stimulate the development of productive sectors.
With a three-year contract, SGS will be responsible for classifying minerals and defining their specifications, based on international reference prices. This process is crucial to ensure that the value of exported minerals fairly and accurately reflects their market value.
In addition, the Mozambican government has implemented a measure requiring 10% of the revenue from mining to be retained in the localities and provinces where the extraction takes place. This measure, which previously stipulated only 2.75% for the districts of origin of the resources, aims to ensure a more equitable distribution of the benefits of mining.
These initiatives represent a significant effort by the Mozambican government to ensure greater transparency and fairness in the mining sector, one of the pillars of the country's economy. With the implementation of these measures, a substantial recovery of revenue and a positive impact on Mozambique's economic and social development are expected.
