Mozambique strengthens mining controls with 15% state stake requirement and local processing mandate
2026-06-05 11:34:14 [Print]
Mozambican President Daniel Chapo has signed a new mining law that mandates a 15% state ownership stake in all mining projects and requires the local processing of minerals. The move tightens the government's grip over the country's natural resources amid rising global demand for battery materials.
Mozambique is the world's third-largest producer of graphite, a critical component in batteries for electric vehicles and energy storage systems.
According to a government notice issued on June 3, the mining law-approved by Parliament in May-is designed to enhance Mozambique's "management of strategic resources in defence of the national interest."
As seen by Reuters, the new legislation states: "The state, through the National Mining Company (ENM), shall have a minimum, free?carried and non?dilutable participation of 15% in all mining projects, at any stage of the value chain."
It remains unclear whether the new rules will apply to existing mines, most of which operate under long-term agreements.
Mozambique is home to one of the world's largest graphite deposits at Syrah Resources' Balama mine in the north. According to the U.S. Geological Survey, China and Madagascar are the top two graphite producers globally.
The country also hosts the world's largest ruby mine-Montepuez, owned by Gemfields-also located in northern Mozambique. In addition, Mozambique holds significant coal assets previously owned by Rio Tinto and Brazil's Vale.
The new regulations ban the export of unprocessed or semi-processed mineral products unless a specific ministerial authorization is granted based on approved plans to eventually carry out local processing.
Mozambique is the world's third-largest producer of graphite, a critical component in batteries for electric vehicles and energy storage systems.
According to a government notice issued on June 3, the mining law-approved by Parliament in May-is designed to enhance Mozambique's "management of strategic resources in defence of the national interest."
As seen by Reuters, the new legislation states: "The state, through the National Mining Company (ENM), shall have a minimum, free?carried and non?dilutable participation of 15% in all mining projects, at any stage of the value chain."
It remains unclear whether the new rules will apply to existing mines, most of which operate under long-term agreements.
Mozambique is home to one of the world's largest graphite deposits at Syrah Resources' Balama mine in the north. According to the U.S. Geological Survey, China and Madagascar are the top two graphite producers globally.
The country also hosts the world's largest ruby mine-Montepuez, owned by Gemfields-also located in northern Mozambique. In addition, Mozambique holds significant coal assets previously owned by Rio Tinto and Brazil's Vale.
The new regulations ban the export of unprocessed or semi-processed mineral products unless a specific ministerial authorization is granted based on approved plans to eventually carry out local processing.
Bauxite Malaysian 45%min CIF China
Unit:USD/dt
Africa bauxite producers' sales volume statistics by country by month
Unit: mt
