By Ricardo Dias
Maputo (MOZTIMES) – Mozambique collected approximately US$12 million in taxes during the latest ruby auction held by Montepuez Ruby Mining (MRM) in Thailand.
The auction generated total revenue of $46.2 million, the government reported, as quoted by the state-owned newspaper “Notícias.”
The revenue comes from a 10% mining production tax (equivalent to $4.6 million) and 16% VAT (amounting to $7.3 million), according to the Ministry of Mineral Resources and Energy, through the Kimberley Process management unit for precious metals and gemstones, during the third auction held in Bangkok, Thailand.
The company also paid export fees. Of the production tax amount, 2.75% is to be channelled to the communities where the gemstones are mined.
Over the past ten years, MRM has held 22 ruby auctions, generating approximately $1.1 billion in revenue. However, last year the company reported a 20% decline in production due to equipment failure and regional instability.
In December, MRM temporarily closed its ruby mine in Montepuez, in the northern province of Cabo Delgado, due to security concerns arising from escalating post-electoral violence. A senior company representative stated in an interview that the mine would only reopen once a political agreement is reached among the relevant parties.
The ruby mine is 75% owned by London-based Gemfields and is operated locally by MRM. (RD)
