The fall in commodity prices on international markets is affecting collection of tax revenues and the maintenance of thousands of jobs, according to a document recently issued in Nampula, Mozambique.
The report, the fifth report for the Extractive Industry Transparency Initiative (EITI), added that, despite the increase in export volume, the revenue collected will not increase due to the fall in prices.
Nampula province has minerals and gems in almost all its territory, the exploration of which is led by Kenmare Resources of Ireland and China’s Haiyu Mozambique.
The head of the Mineral Resources Department of the Provincial Directorate for Mineral Resources and Energy of Nampula, Celestino Sousa said at the meeting to issue the report that industrial production of minerals increased from 689,000 tons in 2011 to 1 million tons in 2014.
However, he continued cited by Mozambican daily newspaper Notícias, the amount of revenue to the State did not register the same upward.
The market prices for zircon, which is explored in Topuito, in the Larde district of Nampula, dropped from US$1,700/ton in 2013 to US$700 currently and ilmenite, used in the production of high quality paints, dropped to US$100/150 although it was US$300 around two years ago. (macauhub/MZ)