A total of 14 mining companies were fined by the General Inspectorate of Mines of Mozambique for failing in June 2023 to declare the quality of ores they produced, that entity declared on Wednesday July 26.
The Inspector General of Mines at the Ministry of Mineral Resources and Energy, Obete Matine, said that the fines are the first imposed on mining operators for lack of information on the quality of their production, since this requirement stems from a decree that came into force recently.
“The mining taxation decree states that the submission of declarations for mining production tax must be accompanied by a report and the document containing the specifications of the quality of the product that has been extracted,” Matine explained.
A company that produces coking coal, which is used in the steel industry, must specify the quality in order to allow for a reliable calculation of the price and the tax payable, the Inspector General of Mines exemplified.
Mr Matine said that the Mozambican state has lost large sums of money in taxes due to lack of knowledge of the quality of the minerals exported and their market value.
The 14 companies fined operate in the exploitation of coal, graphite and heavy sands, out of a universe of 18 that extract these ores in Mozambique, Matine said. The Inspector General of Mines did not advance the amounts of the fines imposed on the offenders, but noted that the financial penalties have as a multiplication factor the national minimum wage.
He noted that those products are the first to be subject to the new rules, with other areas to be covered gradually. Obete Matine said that some of the penalized companies have already paid the fines, and the others are expected to comply within the legally stipulated deadlines.
Earlier this month, the Mozambican government accused mining companies of declaring less production than the real one, in order to obtain “very low” taxes, demanding that the sector increase its tax contribution and participation in the development of the country and communities.