All in all, the report of the Center for Public Integrity (CIP), launched this morning, concludes that the Extractive Sector Transparency Index (ITSE) in Mozambique is still very low.

"From the analysis made for the 22 companies studied in the 2020/2021 edition, on average, the ITSE in Mozambique stood at 0.25 points representing a decrease by 0.4 points," reads the CIP report. According to the report, this scenario could undermine the development expectations placed on the sector.

The report took into account the indicators of the fiscal, corporate governance, social and environmental component.

CIP says the scenario could undermine the development expectations placed on the sector.

The results of the CIP report show that 55% of the companies analyzed have not published any tax information of public interest.

"CIP continues to observe that most of the companies have provided aggregate information on the website of the international group to which they belong without, however, breaking down the details by project. As such, "it is impossible to obtain, from the source mentioned, tax information about the company's project in Mozambique," says the CIP report.

In this aspect (fiscal component) the CIP document says that Vale Moçambique has the best index in terms of transparency, 0.30, followed by the company ICVL Zambeze with an index of 0.25 and Kenmare Resources plc, with 0.22 points.

In fiscal terms, 55% of the companies analyzed did not publish any information of public interest. 

On the issue of corporate governance, the study states that 41% of the companies analyzed have a transparency index above the global average achieved by the 22 companies analyzed in the issue, 0.8. The highlight goes to Kenmare Resources plc, which is the one with the highest transparency index of 0.17, followed by Sasol Petroleum Temane, with 0.16, and Haiyu Mozambique Mining, with 0.14, out of a total of 0.25.

In the same category are configured with the least transparent, the Highland African Mining, Lda companies with an index of 0.03.

The CIP mentions that it counted for the first position of the Kenmare company, the creation of the site in Portuguese, accompanied by the availability of much of the requested information and the openness on the part of the company in making available the requested information. "This same openness was verified in the companies Sasol Petroleum Temane and Haiyu Mozambique MiningCompany," the document stresses.

In comparative terms, in relation to the first edition, the report points out an evolution in about 33% of the 12 companies analyzed in the first edition, a negative evolution in 50% and the maintenance of the same index in 8% of the companies.

Kenmare, the most transparent company

Regarding the social component, the company Kenmare stands out again and is the most transparent with an index of 0,21 out of 0,25 possible points. According to the report, contributed to this position the information made available by the company that "meets almost all the requirements of this component, except for the fact that it is not available on the site. The second place in the same category is attributed to Vale and Haiyu, both with an index of 0.17, followed by Sasol, with an index of 0.15. In the less transparent companies, the highlight goes to ENI, Buzi, Hydrocarbons, Rompco, MRV Ruby Mining, Minas de Moatize.

Kenmare is the most transparent company in the extractive sector

In this category, in comparative terms, in relation to the first edition, there was a positive evolution in about 50% of the 12 companies analyzed in the previous edition, a negative evolution in 17%, and maintenance of the same index in 25% of the companies.

As for the environmental component, the last to be analyzed in the study, CIP says that of the 22 companies only 50% did not publish information regarding the environment and only Kenmare presented a mine closure program. "This situation remains worrying showing a great lack of transparency regarding environmental aspects," the CIP study finds. Of the ideal 20 points for this index, says the CIP study, companies show an average transparency index of 0.04, down 0.01 points from the previous edition.

Overall, the study considers Kenmare as the most transparent company in the extractive sector in Mozambique with an index of 0.79, thus giving it 79 points. The position occupied by this company represents an evolution of about 15 points in relation to the previous edition.