Mozambique: Illegal mining of major concern to the sector
FILE - For illustration purposes only. [File photo: Notícias]
Mozambique broke its gold production record in 2023, with more than 1.6 tons, exceeding projections for both last year and 2024.
According to a report from the Ministry of Economy and Finance containing the budget execution from January to December, to which Lusa had access today, the country produced 1,666.4 kilograms of gold, an increase of 32% compared to 1,263.8 kilograms in 2022, already a record.
Each kilogram of gold is currently worth almost US$67,000 (€61,700) on the international market, valuing Mozambique’s total gold production at almost US$111.6 million (€102.8 million).
This represents 124% of government projections, and even that for this year, which point to the production of 1,583 kilograms of gold.
“The gold production plan indicates a growth of 3% compared to projections for the year 2023,” reads a document supporting the proposal for the Economic and Social Plan and State Budget (PESOE) for 2024.
The document adds that this expected growth results “from greater control of artisanal mining”, but also in view of the “positive performance of producing companies” in the country.
“With greater focus on the company Explorator, Lda., due to the fact that, on one of the exploitation fronts, the company has Mutapa Mining Processing, Lda. On the other hand, we have the resumption of the activities of the company KD Prospero,” the document further explains.
Overall, the Mozambican government expects a growth of 18.6% in the extractive industry sector in 2024, “which counts on the increase in production of the majority of minerals with great weight in the global structure, namely gold, heavy sands, graphite and thermal coal”.
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