“The increase in gold production will result from the strong performance of the two main companies in the sector and the investment in expanding production capacity,” stated the government in support documents for the proposed Economic and Social Plan and State Budget for 2026.
This represents a 4% increase from the estimated 1,651 kilograms of gold anticipated for this year, which already marked a 1% growth from 2024, a year that was affected by reduced activity in Manica province, a major production area, following post-election protests that impacted some mining operations.
Each kilogram of gold is currently valued at approximately 108,000 euros on the international market, so the total Mozambican production expected by 2026, at November prices, represents an estimated nearly 186 million euros.
According to government data, 44% of the gold produced in Mozambique last year was exported, with the percentage expected to slightly increase to 45% in 2025, aiming for a target of 85% by 2029.
However, the Mozambican government suspended all mining licenses in Manica province, central Mozambique, on September 30, and established an inter-ministerial commission to review the licensing regime, strengthen oversight, and implement measures for environmental recovery.
“The suspension should be applied globally, covering licensed operators and those operating irregularly, to stop degradation and create a conducive environment for institutional reorganization for sustainable operation,” stated the Council of Ministers’ spokesperson, Inocêncio Impissa.
Mozambican President Daniel Chapo stated on September 17 that mining is causing an “environmental disaster” in the province.
This follows the operational command of the Defense and Security Forces (FDS), which worked in the province between July 17 and 19 to assess the environmental situation regarding mining, having released a report.
The commission found “uncontrolled mining” on the ground by licensed operators, with companies operating without an environmental recovery plan and waste containment systems, in addition to worker rights violations.
“Security and national sovereignty risks were also identified, with foreign groups involved in illegal mining entering via informal routes and fueling parallel gold trade networks, extortion, and public insecurity, creating social tension hotspots,” said Impissa.
The government described the environmental situation in Manica as critical, pointing to “severe pollution” of rivers showing “reddish, murky, and opaque waters,” resulting from direct washing of minerals and waste disposal from this activity without any treatment.
In response, the government established an inter-ministerial commission involving the ministries of Defense, Mineral Resources and Energy, Interior, Foreign Affairs and Cooperation, Finance, Economy, Agriculture, Environment and Fisheries, Health, Justice, Labor, Gender, and Social Action.
