Exploration of heavy sand deposits in the Quewene region of Vilanculos district will provide the Mozambican state with revenues of several million dollars over the next five years, the deputy managing director of Haiyu Mozambique Mining Co. Lda., Juyi Li, said recently.
Juyi Li, who was speaking during the 19th ordinary session of the Inhambane province government, said that sum includes the taxes planned to build and maintain a heavy sands processing plant in that period.
The Chinese-owned company was authorised to trade minerals to be extracted in heavy sand deposits of 93.77 million tons, namely zircon and ilmenite, which are expected to be 80,000 tons and 1.27 million tons, respectively.
Juyi Li said that his company should invest about US$25 million to build the processing unit and that there was no estimate on the time required for a return on this investment, due to price changes in the international market.
The director general said tax revenue for the state included US$108,900 in social responsibility, US$326,700 in production tax at a rate of 6.0% and US$104,500, in corporate income tax at 32%.
Haiyu Mozambique Mining Co. Lda., with experience of about 10 years in the development of the extractive industry in Mozambique, was set up in Sangache, Angoche district, Nampula province, in 2010, where it also operates heavy sand deposits.
Source: Macauhub
