Mozambique has adopted a new mining law requiring the state to hold a minimum 15 percent stake in all mining projects and restricting exports of unprocessed minerals, as the southern African nation seeks to secure greater benefits from its vast natural resources.
President Daniel Chapo signed the legislation into law after its approval by parliament in May, marking one of the country’s most significant mining policy reforms in recent years.
The new framework strengthens state participation across the mining value chain and aligns Mozambique with a growing trend among African resource-producing nations seeking to capture more value from their mineral wealth through local beneficiation and processing.
Under the law, the state, through the National Mining Company (ENM), will hold a minimum 15 percent ownership stake in all mining ventures.
The participation will be “free-carried” and non-dilutable, meaning the government will not be required to contribute capital for its stake and its ownership cannot be reduced through future financing rounds.
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According to the legislation, the requirement will apply to mining projects at all stages of the value chain, from extraction to processing and related activities.
The government said the reforms are intended to strengthen national control over strategic resources and ensure that mining contributes more directly to economic development.
“The state, through the National Mining Company, shall have a minimum, free-carried and non-dilutable participation of 15 percent in all mining projects,” the law states.
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It remains unclear whether the new provisions will apply retroactively to existing operations, many of which are governed by long-term investment and concession agreements.
The legislation also introduces strict new rules aimed at promoting domestic industrialisation.
Exports of unprocessed or semi-processed minerals will generally be prohibited unless companies receive specific authorisation from the government and present approved plans for eventual local processing.
The measure is designed to encourage investment in domestic refining and manufacturing industries, allowing Mozambique to capture more economic value from its mineral resources rather than exporting raw materials.
Mozambique is one of Africa’s most resource-rich countries and plays an increasingly important role in global mineral supply chains.
The country is the world’s third-largest producer of graphite, a critical mineral used in lithium-ion batteries for electric vehicles and energy storage systems.
One of the world’s largest graphite deposits is located at the Balama mine in northern Mozambique, operated by Australian-listed Syrah Resources.
The country is also home to the Montepuez ruby mine, considered the world’s largest ruby-producing operation, as well as substantial coal reserves developed over the years by major international mining companies.
The reforms come amid rising global competition for critical minerals needed for the energy transition, including graphite, lithium, cobalt and rare earth elements.
Several African governments have moved to tighten regulations governing mineral exports in recent years.
Countries such as Zimbabwe and the Democratic Republic of Congo have introduced measures encouraging local processing and increasing state participation in strategic mining projects as they seek greater returns from booming global demand.
Supporters of the reforms argue that exporting raw minerals deprives resource-rich countries of jobs, industrial development and tax revenues that could be generated through domestic processing.
However, some investors have previously expressed concerns that increased state ownership requirements and export restrictions could raise costs and affect the attractiveness of mining jurisdictions.
For Mozambique, the challenge will be balancing efforts to maximise national benefits from its mineral wealth while continuing to attract the foreign investment needed to develop large-scale mining projects.
The success of the new policy will likely depend on the country’s ability to build the infrastructure, energy capacity and industrial facilities required to support local mineral processing and manufacturing.
As demand for battery minerals and strategic resources continues to grow worldwide, Mozambique is positioning itself to play a larger role not only as a producer of raw materials but also as a participant in higher-value segments of the global mining industry.
