August 24th 2011 - 4:51PM ... Dyveke Rogan
Candidate country
Mozambique ITIE
Overview of Extractive Industries Despite the country's considerable mineral resources, the mining sector is poorly developed, owing to the long civil war during which the country was in effect closed to foreign investment-and the resulting lack of investment and available geological data. As a result, the sector operates well below potential: in 2006 it contributed just 1.6% of GDP. However, a number of large investments are now transforming the sector, which is set to assume a more prominent role in the economy. The country's key areas for export growth are believed to be in base rather than precious minerals. Minerals that are currently being exploited include titanium, tantalum, marble, gold, coal, bauxite, granite, limestone and gemstones. There are also known deposits of pegmatite, platinoids, uranium, bentonite, iron, cobalt, chromium, nickel, copper, granite, fluorite, diatomite, emeralds, tourmaline and apatite. Mozambique has identified reserves of natural gas in commercially exploitable quantities, and further exploration is under way. Status of EITI Implementation The Government established an ‘ad-hoc' multi-stakeholder group of named representatives of the Government, companies, and civil society working together to implement the EITI in Mozambique. This Multi-Stakeholder group became the officials coordinating group of the MEITI early in 2010. A first EITI report was published in February 2011 and the validation report was published in May 2011.On 16 August, the Board declared that Mozambique had made 'meaningful progress'. It agreed that indicators 9, 11, 13, 14, and 15 were unmet, and agreed the following corrective actions were needed in order for Mozambique to achieve compliance:The MSG should agree a clear definition of “material payments and revenues” and incorporate this definition into the reporting templates and reconciliation process for the second EITI Report (indicator 9). This should specifically address the question of the participation of small companies and social payments.The second EITI Report should clearly demonstrate that all entities that make or receive material payments are participating in the reporting process (requirement 11).As per the Indicator Assessment Tool for Indicator 13, the government and MSG should take steps to ensure that government disclosures to the reconciler are based on audited accounts to international standards and agree a strategy for addressing these issues in accordance with the requirements as specified in Validation IAT 13. In accordance with the agreed definition of materiality (see point 1, above), the MSG should ensure that all material oil, gas and mining payments by companies to government are disclosed to the reconciler and incorporated into the second EITI Report (indicator 14).In accordance with the agreed definition of materiality (see point 1, above), the MSG should ensure that all material oil, gas and mining revenues received by the government are disclosed to the reconciler and incorporated into the second EITI Report (indicator 15).Furthermore, it was suggested that the MSG revises its Terms of Reference based on the lessons learned from the first EITI Report and the validation process in order to secure effective governance and oversight of the MEITI process.The Board renewed Mozambique's candidacy renewed for 18 months (i.e. until 15 February 2013), by the end of which it must have completed a Validation that demonstrates compliance with the 2011 edition of the EITI rules. Governance of EITI Implementation Dr. Abdul Razak Noormahomed, Deputy Minister of Mineral Resources is the leader of the Mozambique EITI implementation. Mozambique EITI National Coordinator Dr Benjamin ChilengeCoordination Committee Coordinator, Ministry of Mines E-Mail: ben [dot] chilenge [at] tvcabo [dot] co [dot] mz Companies operating* Oil & gas companies: Sasol, Eni*, Statoil* Mining companies: BHP Billiton*, Vale*, Camec Mining, Codelco Mining, LaFarge, Metorex Ltd* EITI Supporting Company * Note: Company list based on EITI research and is not conclusive For further information, please contact Eddie Rich at the EITI International Secretariat.
