Mozambique tightens control of mining sector with 15% state stake and local processing mandate
Mozambique has enacted a sweeping new mining law requiring a minimum 15% state ownership stake in all mining projects and mandating local processing of minerals, as the country seeks to capture more value from its vast natural resources amid rising global demand for critical minerals. President Daniel Chapo signed the legislation after it was approved […]
Black News 
Mozambique has enacted a sweeping new mining law requiring a minimum 15% state ownership stake in all mining projects and mandating local processing of minerals, as the country seeks to capture more value from its vast natural resources amid rising global demand for critical minerals. President Daniel Chapo signed the legislation after it was approved by Parliament in May.
Under the new framework, the state, through the National Mining Company (ENM), will hold a minimum 15% free-carried and non-dilutable stake in all mining ventures across the value chain. The law is designed to strengthen national control over strategic resources and increase the economic benefits Mozambique derives from its mining industry.
The legislation also prohibits the export of unprocessed or semi-processed minerals unless companies obtain special ministerial authorization and commit to approved plans for domestic processing. The move aligns Mozambique with a growing number of African resource-rich nations seeking to promote local beneficiation, industrialization, and job creation rather than exporting raw materials, according to CNBC Africa.
Mozambique is the world’s third-largest producer of graphite, a critical mineral used in electric vehicle batteries and energy storage systems. The country is also home to some of the world’s largest graphite deposits, major ruby operations, and significant coal resources. Analysts say the reforms could boost domestic value addition and government revenues, though investors will closely watch how the new rules affect project economics and future investment decisions. Questions also remain over whether the regulations will apply to existing mines operating under long-term agreements.
