This EITI Report covers Mozambique's extractive sector in 2013 and 2014. It was published in December 2015.
Expansion of the extractive sector has driven economic growth in recent years, however it is being hit hard by the fall in gas and coal prices. In addition to natural gas and coal, Mozambique has world-class reserves of base metals and gemstones. Petroleum companies and the government are negotiating building an LNG plant in northern Mozambique. In the mining sector, there has been a downturn in the past couple of years. The distribution of benefits from the sector and ensuring that the state’s participation in the sector is managed in a transparent and accountable manner are amongst the debates to which the EITI can contribute.
The legal framework for the petroleum and mining sectors was revised in 2014. The new legislation strengthens state participation in the hydrocarbon sector and creates opportunities for increased Mozambican participation. Foreign investors are required to be registered in a transparent jurisdiction where ownership can be confirmed but the government does not maintain a public register of beneficial owners. The 2014 Report included partial information on beneficial ownership.
Mozambique’s 2013-14 EITI Report requested beneficial ownership from reporting companies, and most companies provided information about legal ownership. Many of the companies in the oil and gas sector are publicly listed. A key challenge will be to cover the mining sector, including details on companies with exploration licenses, small scale mining license holders and companies that bid for licenses.
Mozambique has published a roadmap on how to disclose beneficial owners of the sector by 2020.
Mozambique’s production is modest compared to the reserves of gas and minerals. The vast majority of the minerals produced were exported. The value of total production nearly halved in 2014, compared to 2013. Both coal and gas production decreased significantly. Coal accounted for 65% of the value of total extractive production in 2014. The total value of the 1.8 tonnes of coking coal and 1.3 tonnes of thermic coal produced was roughly USD 330 million. Only 86.6 Gj of gas, worth USD 100 million, was produced. The only gas project in production phase is the Pande Temane gas field. The large off-shore fields are still in exploration phase.
Natural gas discoveries off the Mozambican coast are estimated to exceed 160 tcf. Mozambique also has significant reserves of coal, heavy sands, base metals and gemstones.
|Gas||Significant off-shore reserves|
|Coal||Significant reserves. Transport and low prices a challenge.|
Extractive industries accounted for 27% of total government revenue in 2014. The gas sector contributed 90% of the over USD 1 billion total extractives revenue. The largest revenue streams were capital gains tax (71%) and corporate income tax (19%). The value of gas royalties received in kind was USD 5 million. Extractive revenues have increased nearly ten-fold since 2011.
Extractive revenues are recorded in the state budget. The majority of payments are made to the General Tax Directorate. More information about the state agencies that receive revenue is available in section 7.4 of the 2013-2014 EITI Report.
2.75% of extractive revenue is transferred to the communities where gas and mining projects are located. The EITI Report notes that the total amounts transferred in 2014 corresponded to 96% of what should have been transferred. The actual transfers accounted for less than 50% of what was budgeted due to royalty payments not reaching the forecasted level. More information is available in section 7.2 of the report.
Mozambique EITI Reports have highlighted inconsistencies in data collected from the online mining cadastre and other government agencies, which has helped improve data collection and recording. The 2012 Mozambique EITI Report noted that the data from the cadastre was sometimes incomplete or out of date, and companies were inconsistent in their use of tax identification numbers. The solving of these issues has made it easier for the government to monitor payments from individual mining companies.
The national EITI Coordinating Committee has set the following objectives for the EITI in 2016-2018:
Clarifying and communicating the mechanisms for allocating revenue to communities affected by extraction;
Ensuring access to information to enable public participation in the debate on extractives governance;
Improving the accountability mechanisms of institutions and companies in the sector;
Strengthening the role of the EITI Coordinating Committee in ensuring access to information;
Improving transparency of license allocations;
- Contributing to improving the business environment.
The Mozambican EITI Secretariat was established in early 2009 and is currently hosted in the World Bank’s Mining and Gas Technical Assistance Project (MAGTAP) offices in Maputo. The MSG consists of 14 members and 11 alternates with representatives from the government, i.e. the Ministry of Mineral Resources and Energy (MIREME), Ministry of Economy and Finance, Ministry of Land, Environment and Rural Development (MITADE), four private sector companies from both mining and petroleum sectors, four civil society organisations nominated from the CSO platform on extractive industries and two observers (Geological Mining Association of Mozambique and National Syndicate of Journalists). The MSG meets on quarterly basis and is currently chaired by Hon. Leticia da Silva Klemens, the Minister of Mineral Resources and Energy.
This EITI Report covers Mozambique's extractive sector in 2012. It was published in December 2014.
This is the Mozambique EITI 2015 Annual Progress Report (in Portuguese), in accordance with Requirements 7.4 and 8.4.
This is the Mozambique EITI 2016-2018 work plan (in accordance with Requirement 1.5).
Ines Schjolberg Marques
Ines Schjolberg Marques is part of the Anglophone and Lusophone Africa team and supports wider policy work at the EITI International Secretariat. She holds an MSc in Development Studies from London School of Economics,
EITI responsibilities: Africa and Middle East. Oversight for finance, human resources, communications, and the Global conferences.
Eddie Rich has been Deputy Head of the EITI since the International Secretariat was established in 2007.