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Mozambique authorities act to protect mining tax base from illegal activities

5th May 2017

By: Keith Campbell

Creamer Media Senior Deputy Editor

     

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The Cabo Delgado Provincial Command of the Mozambique Republic Police announced late last month that it had expelled more than 4 000 illegal miners from the Namanhumbir area since February. Fifty of the illegal miners, both Mozambicans and foreigners, had been arrested. The foreigners were to be deported to their home countries and the Mozambicans released on condition that they undertook not to return to the ruby-rich Namanhumbir district.

Cabo Delgado Provincial Police Command spokesperson Malva Brito told the newspaper Notícias that the police and other security forces were committed to ending illegal ruby and garnet mining in the area. “The operation to expel the illegal miners never stopped,” he affirmed. “It’s here to stay. The defence and security forces have clear orders not to allow anyone to practise illegal mining. The playing about is over, and illegal mining will no longer be tolerated. Our forces are on the ground, and we will not allow these miners to return.”

He also announced the capture of a small gang of poachers in the Macomia district of the province. Three men – two Mozambicans and one Tanzanian – had been using an AK-47 assault rifle to poach game in the Quirimbas National Park. The weapon was also seized. They were also wanted for a number of burglaries. “The police have been looking for these people for a long time. Thanks to our investigations and the collaboration of the community, the group has fallen into our hands.”

Brito gave the assurance that calm had been restored to Namanhumbir and the surrounding villages. Government is, it seems, determined to ensure that the ruby fields of the area are exploited only by properly licensed companies, which pay taxes. The ruby mining licence for the Namanhumbir district, which covers 33 600 ha, is held by Montepuez Ruby Mining, which is 75%-owned by UK company Gemfields and 25% by Mozambique enterprise Mwiriti.

The company held its first rough ruby and corundum auction in June 2014. Up to the end of last year, it had carried out a total of seven auctions, bringing in revenues of $225.7-million and the company had paid taxes (corporate tax and royalties) to the Mozambique authorities amounting to $55.3-million. In fact, Montepuez Ruby Mining pays about 20% of all the corporate tax levied in Cabo Delgado.

The company also has a community development strategy to develop projects in collaboration with the local communities. This is focusing on three areas: health, education and agriculture. Projects so far have included the development of chicken farms, including supporting the creation of a women’s chicken farming cooperative, and assisting in the development of secondary schools and skills schools and medical centres. The company already has a mine site rehabilitation programme planned and is assisting with nature conservation (including large carnivore protection) and reforestation in the area. It is also taking care not to use any harmful chemicals in its operations.

Edited by Martin Zhuwakinyu
Creamer Media Senior Deputy Editor

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