According to Mozambique’s fourth EITI Report, extractive industries contributed 2% of GDP in 2012. However, investment in the mining and hydrocarbon sectors is growing significantly, promising a rapid expansion of the sectors in the next few years. The oil, gas and mining industry was the fastest growing sector in 2012 and helped propel GDP growth to 7.4 per cent. Commercial oil production is set to start in 2014.
In addition to the large discoveries of natural gas in the Rovuma basin, where the American and Italian multinationals Anadarko and ENI, respectively, hold drilling rights, there are minerals all over the country, especially in the Niassa province where gold and precious stones were found. In the central region of the country, in Manica Province, there is also strong mining potential, with the exploration of diamonds and semi-industrial exploration of gold. In Zambezia Province, there are significant reserves of precious and semi-precious metals, although their exploration is not undertaken on a large scale.
There are also large-scale exploration and production operations in natural gas by Sasol Petroleum Temane; in coal by Vale Mozambique; and in heavy sands by Kenmare Moma Mining.
So far six EITI Reports have been published, covering years 2008-2014. The latest EITI Report covering 2013-2014 was published in December 2015 and shows that payments from extractive companies reached USD 1 billion for the first time in 2014. According to the report, capital gains tax continued to be the main source of revenue from the industry despite there having been a drop in production of extractives and exports value. Read more
The 2012 Report, published in December 2014, showed that revenues from the extractive sector more than tripled, reaching almost US $400 million. The increase was largely due to the USD 170m capital gains tax (CGT) payment made by the petroleum company Cove Energy, although payments from other companies also increased. The report also includes company-by-company production data, a description of the allocation of in-kind gas royalties by the state, and a first step towards disclosing the beneficial owners of companies.
Mozambique became an EITI Candidate country in May 2009. In 2011, the country underwent its first Validation, and the EITI Board declared that meaningful progress had been made but not all requirements were met. Following a review conducted by the International Secretariat, Mozambique was declared EITI Compliant in October 2012.