The Mozambican authorities believe that "half of Mozambique's exports come from mining, but this export figure is not reflected in taxes, which are very low".
The executive's conclusion is contained in the summary of a meeting that members of the government recently held with representatives of companies in the mining sector, demanding that the sector increase its tax contribution and participation in the development of the country and its communities.
At the meeting, the government representatives relied on the most recent report by the Extractive Industries Transparency Initiative (EITI), an international mechanism that measures transparency in the sector, to point out the disparity between the minerals produced and those declared, the disparity in sales prices between the different mining companies in Mozambique and the disparity between the sales prices charged in the country and those charged on the international market.
On the other hand, there are different models for declaring production and non-compliance with the Mining Law, reads the text, quoted by Lusa.
However, the government pointed out the need to study processing mechanisms for minerals produced in Mozambique, such as graphite, heavy sands and coal.
The processing of mineral products in the country would create jobs and contribute to industrialization.
"In short, the government is demanding the valuation of all minerals produced in the country," the document states.
At the meeting, those present defended the need for companies to increase their contribution to the social and economic development of the communities where mining activities take place, by creating jobs, building technical schools, water supplies and access roads.
For their part, the companies advocated the involvement of the Chamber of Mines in drawing up regulatory instruments for the sector, building infrastructure to transport production and supplying stable and reliable energy to the industry.
They also advocated the need for greater coordination between the government's various export stakeholders, in order to avoid contradictions in the interpretation of the rules that regulate the area.
The operators also called for an end to export restrictions caused by the absence of a reference price at the point of sale and purchase, and for product quality tests to be required at the export stage rather than at the production stage.
Several internal and international reports have accused multinationals operating in Mozambique of under-reporting production figures.
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