Fourteen mining companies were fined by Mozambique's General Inspectorate of Mines for failing to declare the quality of the ores they produced in June, the inspectorate told Lusa today.

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 failing to provide information on the quality of their production, since this requirement stems from a decree that came into force recently.

"The mining tax decree stipulates that the submission of declarations for the 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, so that the price and tax to be paid can be reliably calculated, said the Inspector General of Mines.

Obete Matine pointed out that the state has lost large sums of money in taxes because it doesn't know the quality of the minerals exported and their market value.

The 14 companies fined operate in the mining of coal, graphite and heavy sands, out of a total of 18 that extract these minerals in Mozambique, said Matine.

The Inspector General of Mines did not give details of the fines imposed on offenders, but noted that the fines are multiplied by the national minimum wage.

He noted that those products are the first to be subject to the new rules, with the other areas to be covered gradually.

Obete Matine said that some of the penalized companies have already paid their fines and the others are expected to do so within the legally stipulated deadlines.

Earlier this month, the government accused mining companies of declaring less production than they actually produced in order to obtain "very low" taxes, demanding that the sector increase its tax contribution and participation in the development of the country and its communities.

The Mozambican government's position is contained in the summary of a meeting that members of the government recently held with representatives of companies in the mining sector.

In the document, to which Lusa had access today, the authorities consider that "half of the exports that occur in Mozambique result from mining, however, this number of exports is not reflected in the taxes, which are very low".

Several internal and international reports have accused multinationals operating in Mozambique of under-reporting production figures. (Lusa)