The Mozambican non-governmental organization Centro de Integridade Pública (CIP) considered this Thursday that tax revenues from mining companies in southern Cabo Delgado are compromised due to the spread of armed attacks.

In an analysis it released yesterday, the CIP warns that there are mining projects under threat, with the spread of violence, calling into question the revenue projections for the state.

With the attack that occurred at the beginning of June in Ancuabe district, the companies Twigg Exploration & Mining and AMG Graphit Kropfmuhl, which exploit graphite, suspended their transport and mining activities for security reasons, notes the analysis quoted by Lusa.

Another company, Montepuez Ruby Mining, has not stopped operations, but has issued warnings about insecurity due to the extended range of the armed groups.

The three companies paid more than 1.5 billion meticais in taxes in 2020, which is 27% of the mining sector's total contribution, CIP points out.

The NGO mentions that the Economic and Social Plan and the State Budget projected for this year a growth in the production of graphite on the order of 128.6%, plus 15% in the case of ruby and 39% for gold, the first two being mostly exploited in Cabo Delgado.

"However, the suspension of graffiti projects is an indicator that the projections will not be achieved and, consequently, the projected volume of state revenue from the sector is compromised," reads the analysis.

The impact of the spreading war in Cabo Delgado will force the government to revise its revenue and growth projections, as well as adjust its revenue allocation priorities for expenditure materialization.

The executive, he continues, will have to define mechanisms to guarantee the continuity of projects that are of capital importance for the country's development.

Cabo Delgado province has been terrorized since 2017 by armed rebels, with some attacks claimed by the extremist group Islamic State.