The inclusion of the “G-Factor for Natural Resources” indicator—which reveals the percentage of natural resource revenues remitted to the state—is under consideration as a new transparency mechanism to be adopted by companies in the country’s extractive sector, announced on Tuesday, April 21, the coordination committee of the Extractive Industries Transparency Initiative (EITI), as cited by the Engineering News website.
According to the EITI, the proposal aims to strengthen accountability and provide a clearer picture of companies’ tax contributions in a sector often marked by concerns regarding transparency and revenue management.
New transparency indicator under review
Introduced in 2021 by mining company Gemfields, the parent company of Montepuez Ruby Mining (MRM), the indicator aims to standardize how companies’ contributions are measured, assessing the efficiency of converting natural resources into revenue for the state.
According to EITI Mozambique, “the model is based exclusively on amounts actually paid during the reporting period, excluding amounts recognized only for accounting purposes or not yet settled,” which, according to the institution, reinforces the indicator’s consistency from the perspective of actual financial flows.
The organization adds that the proposal, included in the 13th EITI Mozambique Report, “aims to provide a concise overview of the direct tax contributions made by mining and oil companies, facilitate analysis of their trends over time, and strengthen public communication.”
Tax Contribution and Impact on the State
For his part, Gemfields’ CEO, Sean Gilbertson, stated that the company has actively promoted the adoption of the indicator since its creation, arguing that its widespread implementation will allow governments and citizens to “better assess the management of their resources.”
“We are pleased that EITI Mozambique is considering its implementation and believe this will help promote a more transparent, formal, and legitimate extractive industry in Mozambique,” he stated.
Data released on April 9 indicates that, as of December 31, 2025, Montepuez Ruby Mining channeled 24% of its total revenues to the state, equivalent to more than 18.93 billion meticais in taxes and royalties.
With the eventual adoption of the G-Factor, the country will have an additional tool to more rigorously monitor financial flows in the extractive sector, which is considered strategic for the national economy.
