Keypoints:
- Mozambique mandates a 15 percent state stake in mining projects
- New law restricts exports of unprocessed minerals
- Move aligns with Africa’s growing resource nationalism trend
MOZAMBIQUE has enacted a new mining law requiring a minimum 15 percent state stake in all mining projects and restricting exports of unprocessed minerals, marking a major shift in how the country manages its strategic resources.
The law, approved by Parliament in May and formally published on June 3, 2026, comes as competition intensifies for critical minerals used in electric vehicle batteries, energy storage systems and other clean energy technologies. Mozambique is one of the world’s leading graphite producers, giving the country a strategically important role in global supply chains.
The measures place Mozambique among a growing number of African resource producers seeking a larger share of mining revenues and greater domestic processing of critical minerals needed for the global energy transition.
New rules expand state’s role
According to the legislation, the Mozambican state, through the National Mining Company (ENM), will hold a minimum 15 percent free-carried and non-dilutable stake in all mining ventures across the value chain.
A free-carried interest means the government receives equity in a project without contributing to the initial development costs, allowing it to benefit from future revenues while limiting upfront financial exposure.
The government says the measure is designed to strengthen the country’s management of strategic resources and ensure that the benefits of mineral wealth are more widely shared.
The legislation also introduces stricter requirements for local value addition. Companies will generally be prohibited from exporting unprocessed or semi-processed mineral products unless they obtain specific ministerial authorisation and present approved plans for future domestic processing.
The Mines Ministry had not immediately provided further details on implementation.
A shift towards local beneficiation
The new law represents one of Mozambique’s most significant mining policy changes in recent years and reflects a broader trend across Africa.
Governments across the continent are increasingly seeking to capture more value from natural resources rather than exporting raw materials for processing abroad.
Countries such as the Democratic Republic of Congo have pursued policies aimed at increasing domestic benefits from cobalt and copper production. Earlier this year, the DRC tightened controls over its cobalt trade as authorities sought to increase oversight of a mineral that is critical to the global energy transition.
Meanwhile, Zimbabwe has introduced restrictions on raw lithium exports and other measures designed to encourage local value addition. The country’s evolving approach has become a closely watched case study as Zimbabwe tests its lithium beneficiation strategy in an effort to build domestic processing capacity.
The legislation arrives as African governments seek to capture greater value from critical minerals amid rising geopolitical competition between China, Europe and the United States for battery supply chains and energy-transition resources.
For Mozambique, the policy shift is particularly significant because of the country’s growing importance in the global critical minerals market.
Graphite at the centre of global demand
US Geological Survey data show Mozambique is the world’s third-largest graphite producer and hosts some of the world’s largest known graphite deposits.
Graphite is one of the most important battery minerals, used in the anodes of most lithium-ion batteries that power electric vehicles and energy storage systems. Demand for the mineral is expected to increase substantially over the coming decades as countries accelerate efforts to transition towards cleaner energy systems.
One of Mozambique’s most important mining assets is the Balama graphite operation, owned by Syrah Resources. Located in northern Mozambique, the project is widely regarded as one of the world’s largest graphite mines. Its strategic importance was underscored when the United States backed Mozambique’s graphite sector through a $46m investment aimed at strengthening non-Chinese battery mineral supply chains.
Investor questions remain
While the legislation outlines the government’s new role in future mining developments, uncertainty remains over how existing operations will be affected.
Reuters reported that it remains unclear whether the new requirements will apply to current mining projects, many of which operate under long-term agreements negotiated before the new law was introduced.
Industry observers are expected to watch closely for additional regulations clarifying implementation timelines, exemptions and the treatment of existing contracts.
The policy could help Mozambique increase domestic employment, industrial activity and government revenues if processing facilities are successfully developed. However, some investors may seek further clarity on regulatory stability before committing capital to new projects.
Building domestic processing facilities will require major investment in power, transport infrastructure and industrial capacity, potentially creating implementation challenges in the short term.
Resource nationalism gains momentum
Mozambique’s decision underscores a wider debate unfolding across resource-rich African countries. As global demand for critical minerals rises, governments are increasingly questioning whether traditional extractive models deliver sufficient economic benefits.
The policy mirrors a broader continental trend in which governments are seeking larger shares of mining revenues, tighter oversight of strategic resources and greater local participation in mineral value chains. Similar debates are unfolding in countries ranging from the Democratic Republic of Congo to Zimbabwe as policymakers reassess how Africa can derive more value from the minerals powering the global energy transition.
Supporters argue that local processing requirements and greater state participation can help countries move up the value chain, create skilled jobs and strengthen industrial development. Critics, however, caution that additional regulatory requirements could discourage investment if implementation is not carefully managed.
For Mozambique, the challenge will be balancing investor confidence with growing domestic pressure to ensure that the country’s mineral wealth contributes more directly to long-term economic development.
