Mozambique requires 15% state ownership in mining projects

Mozambique’s President Daniel Chapo has signed a new law requiring 15% state ownership in all mining ventures and local processing of minerals, tightening control over its resources as demand for battery materials grows.

The law, approved by parliament in May, aims to strengthen Mozambique’s management of strategic resources in defence of the national interest, according to a government notice dated June 3.

“The state, through the National Mining Company, shall have a minimum, free‑carried and non‑dilutable participation of 15% in all mining projects, at any stage of the value chain,” reads part of the new law seen by Reuters on Thursday.

It was not immediately clear whether the new rules would apply to existing mines, which are mostly covered by long‑term agreements.

Mozambique is the world’s third‑largest graphite producer, a key material used in batteries for electric vehicles and energy storage. The country has one of the largest graphite deposits in the world at Syrah Resources’ Balama operations in the north. China and Madagascar are the top two producers, according to the US Geological Survey.

The new regulations prohibit the export of unprocessed or semi‑processed mineral products, except where covered by a specific ministerial authorisation based on approved plans to eventually process locally.

Mozambique joins a growing number of African countries, including Zimbabwe and the Democratic Republic of Congo, that are tightening control over raw exports for greater economic benefit from their resources.

SOURCE: Reuters