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Montepuez Ruby Mining Claims to Have Paid Over $200M in Taxes to Government

Montepuez Ruby Mining Claims to Have Paid Over $200M in Taxes to Government

The ruby mining company Montepuez Ruby Mining (MRM) has already channelled USD 207.6 million in various taxes and fees to the state coffers over the last 10 years. MRM started operations in 2014 in Montepuez district in Cabo Delgado province. The company pays the state for ruby mining in Namanhumbir, an administrative post in Montepuez district.

Of the various taxes, the highlight goes to the Corporate Income Tax (IRPC) and the Mineral Royalty rate. Disaggregated data from the company indicate that, last 2022, MRM paid USD 44.5 million to the State coffers, of which USD 25.9 million in IRPC and USD 18.6 million in Royalties. Already in the last five years (2018-2022), MRM channelled USD 124.5 million to the State, of which USD 74 million in IRPC and USD 50.65 million in Royalties.

A statement sent to “Carta” explains that the USD 203.6 million corresponds to 23% of the total revenues recorded by the company in the last decade, amounting to USD 903 million, resulting from 18 auctions held.

The figures are from MRM’s ‘G-Factor for Natural Resources’, a tool that provides data on the tax contribution and also aims to increase transparency about the levels of capital shared by the company with the government. The ‘G-Factor for Natural Resources’ is a tool that can be applied by other companies such as those in the mining, oil&gas, timber or fishing sectors.

“The G-Factor for Natural Resources is intended to become an easy-to-understand indicator of the percentage of revenue that a mineral resource operation pays to the country to which the resources belong in primary and direct taxes, where the host government is a shareholder – dividends. As such, it is an indicator of the share of wealth generated by natural resources paid to the host country government. The G-Factor for Natural Resources takes its name from the g’s in “government”, “governance” and “good practice”, the note explains.

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“Given the evolution of resource nationalism on the one hand, and the increased strategic competition by companies and states for access to resources on the other, it seems to us that a practical measure that allows for a more direct comparison of the sharing of natural resource wealth would greatly help identify the responsible custodians of nations’ resources. We hope that the G-Factor for Natural Resources will be voluntarily adopted by other companies, applied by host country governments and incorporated into projects such as the EITI,” said Sean Gilbertson, CEO of Gemfields, parent, operator and 75% owner of MRM.

Carta de Moçambique

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