By: Creamer media

Initially introduced in 2021 by miner Gemfields, the parent company of Montepuez Ruby Mining (MRM), the measure intends to promote greater transparency and accountability among companies responsible for extracting natural resources wealth.

By adopting a standardised calculation, it aims to provide an indicator of the efficiency of natural resources companies in converting natural resources into funds for the host government.

The proposal, included in the thirteenth EITI Mozambique Report, “aims to provide a concise overview of the direct fiscal contribution of mining and petroleum companies, facilitate analysis of its evolution over time, and strengthen public communication, thereby contributing to a better understanding of financial flows in the extractive sector”.

EITI Mozambique further explains that “the [G-Factor] model is based exclusively on values actually paid during the reporting period, excluding amounts merely recognised in accounting terms or not yet settled, thus reinforcing the consistency of the indicator from a real financial flows perspective”.

“We have been actively promoting the adoption of the G-Factor for Natural Resources since we introduced the measure in 2021, and continue to encourage broader industry adoption so that host governments and their citizens can better assess the stewardship of their resources.

“We are delighted that EITI Mozambique is considering its implementation and strongly believe that doing so will help foster a more transparent, formal and legitimate extractive industry in Mozambique,” says Gemfields CEO Sean Gilbertson.

On April 9, Gemfields released updated G-Factor for Natural Resources data for MRM up to December 31, 2025.

According to the indicator, since the start of its operations, MRM has paid 24% of total revenues to the government of Mozambique, amounting to over MZN18.93-billion ($296.8-million) in mineral royalties and corporate income tax, the company points out.