By Enyichukwu Enemanna
In a bid to further exercise control on the country’s resources, especially as demand for rare materials crucial for the manufacturing of battery increases, Mozambique’s President Daniel Chapo has signed a new law requiring 15% state ownership in all mining ventures, as well as local processing of minerals.
Mozambique is the world’s third-largest graphite producer, a key under-earth material used in making electric vehicle batteries and energy storage.
The parliament had in May passed the new mining law, which aims to strengthen Mozambique’s “management of strategic resources in defence of the national interest,” a government notice dated June 3 says.
“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,” the new law sighted by Reuters on Thursday reads in part.
There was no clarification on whether the new rules would apply to existing mining projects, which are mostly covered by long-term agreements.
The move places Mozambique among a growing number of African countries tightening control over raw export of resources, aiming to derive greater economic benefit from their mineral deposits.
It joins the likes of Zimbabwe, a top continental lithium producer and the Democratic Republic of Congo, the world’s leading cobalt producer and major global copper supplier.
Mozambique has one of the largest graphite deposits in the world at Syrah Resources’ Balama operations, located in the northern region of the country.
According to the U.S. Geological Survey, China and Madagascar are the top two producers.
The world’s largest ruby mine, Montepuez, owned by Gemfields is also located in northern Mozambique and the country also has significant coal assets previously owned by Rio Tinto and Brazil’s Vale.
The new regulations prohibit the export of unprocessed or semi‑processed mineral products, except where they are covered by a specific ministerial authorisation, based on approved plans to eventually process locally.
