Africa Finance Gem Industry Mining Mozambique Report Ruby Tax

Ruby mine among biggest taxpayers in Mozambique

Montepuez Ruby Mining (MRM) ranked second in the sector as taxpayer to the Mozambican state in 2017 and 2018, the eighth report of the Extractive Industry Transparency Initiative (EITI) indicates.

MRM taxes contributed 2.06 billion meticais in 2017 and 2.3 billion meticais in 2018, totalling approximately 4.5 billion meticais, according to the reconciled data of all payments made by the company in these two years and officially confirmed by the State.

MRM’s contributions grew, as did the state’s gains from the extractive industry. Its contribution to the gross domestic product stood at 6.86% and 7.35% in 2017 and 2018, respectively.

The research behind the EITI report comes from 29 extractive industry sector companies, 11 from the hydrocarbon sector and 18 from the mining sector, and all with organised and audited accounting.

The second position cited is for the entire country. In Cabo Delgado, MRM dominates contributions, and was the province’s largest tax payer from 2014 to 2018.

This “significant contribution” makes the mining company’s managers “proud,” while they add that Mozambique needs to “professionalise” the sector to make still more money.

“Rubies belong to Mozambique, and we must structure the gemstone industry to bring the maximum amount of money into the country from these resources. MRM’s job is to guard the rubies of Mozambique, mine them responsibly, market them, sell them at the highest price and bring all the money back to Mozambique. This is what MRM does,” Claudius Nhongonhema, deputy director general of the mining company, said.

Source: Notícias via Club of Mozambique

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