The state’s mandatory acquisition of a fifteen percent stake in mining operations could severely impact future foreign investment in Mozambique.
A top mining industry official expressed these concerns during a prominent regional energy and resources conference in Zimbabwe this Thursday.
Mozambique holds immense global significance as a leading producer of graphite, a critical element used in modern electric vehicle batteries.
The country’s Chamber of Mines fears the legislative amendment will make the nation far less appealing to competitive international capital.
Conversely, government officials defended the revision as a necessary mechanism to protect national interests and manage strategic resources more effectively.
In tandem with the ownership stake, the new legal framework strictly prohibits the export of unprocessed or semi-processed mineral products.
Exemptions to the export ban require direct ministerial approval, which is conditional on corporate plans to establish local processing facilities.
Industry representatives expressed support for the domestic value-add mandate, noting it aligns with a growing resource nationalism trend across Africa.
However, executives emphasized that local processing requires governments to guarantee stable infrastructure, including reliable electricity, water, and transport logistics.
The policy shift directly impacts major operations, including the massive Balama graphite deposit and the world-renowned Montepuez ruby mine.
