Mozambique: Q1 gold production up 33% YoY to 460kg

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Mozambique: Q1 gold production up 33% YoY to 460kg

11:32 CAT | 11 Jun 2024

FILE - For illustration purposes only. [File photo: Lusa]

Gold production in Mozambique grew by 33% in the first quarter, year-on-year, to more than 460 kilos, higher than projected, according to government data that Lusa had access to on Tuesday.

According to a report by the ministry of the economy and finance detailing mining production and extraction, Mozambique produced 461.09 kilos of gold in three months, compared to 346.30 kilos in the same period in 2023, corresponding to 29% of the target for the whole of 2024, which is 1,583.59 kilos.

Each kilogramme of gold is currently worth around €68,000 on the international market, so Mozambique’s total production in the first quarter represents almost €31.5 million.

Mozambique had already broken the record for gold production in 2023, with more than 1.6 tonnes, higher than projected for last year and for 2024, according to budget execution data previously reported by Lusa.

According to a report by the ministry of economy and finance on budget execution from January to December, the country produced 1,666.4 kilos of gold, a 32% increase on the 1,263.8 kilos in 2022, already a record.

This was also a realisation of 124% compared to what was initially planned by the Mozambican government, but also above the projections for this year, which point to the production of 1,583 kilos of gold.

‘The gold production plan indicates a growth of 3% compared to the projections for the year 2023,’ reads the documents supporting the proposal for the Economic and Social Plan and State Budget (PESOE) for 2024.

The document adds that this expected growth is the result of ‘greater control of artisanal mining’, but also due to the ‘positive performance of the country’s production companies’.

“With a greater focus on the company Explorator, Lda, due to the fact that, on one of the exploration fronts, the company has Mutapa Mining Processing, Lda. On the other hand, we have the resumption of activities by the company KD Prospero,’ the document reads.

Source: Lusa