Mozambique Moves to Tighten Mining Control with 15% State Stake, Export Ban

Mozambique is advancing sweeping reforms to its mining sector, proposing a minimum 15% state stake in all projects and a ban on the export of unprocessed minerals—signalling a decisive shift toward resource nationalism.

The draft legislation, set for parliamentary debate on 7 May, aims to increase domestic value capture, expand local processing, and strengthen state participation across the mining value chain.

Stronger state role

Under the proposed framework, the state—through Empresa Nacional de Mineração (ENM)—will hold at least a 15% equity stake in all mining ventures, with scope to increase participation in strategic projects.

The reforms also introduce:

• A ban on raw mineral exports to promote in-country beneficiation
• A requirement for 10% of mining revenues to fund local development
• New artisanal mining zones to formalise small-scale operators
• Revised licensing terms, including 2–5 year exploration permits and up to 25-year concessions

Authorities say the current mining law, in place for more than a decade, has limited the country’s ability to fully capture value from its natural resources.

Industrialisation push

President Daniel Chapo said the reforms are designed to ensure mineral wealth translates into “lasting engines of economic and social development,” with a focus on job creation, local enterprise development, and public revenue generation.

The export ban is expected to compel investment into domestic processing capacity, particularly in minerals linked to global energy transition supply chains.

Continental trend accelerates

Mozambique’s move reflects a broader shift across Africa, where governments are tightening control over extractive industries to retain more value domestically.

Mali has increased state and local ownership in mining projects to as high as 35%
Burkina Faso has expanded state stakes and nationalised selected gold assets
Ghana has strengthened regulation of both large-scale and artisanal mining

These policy shifts come as global demand for critical minerals—such as cobalt, lithium, and rare earths—continues to rise, intensifying competition for resource control.

Value retention challenge

Despite holding some of the world’s largest mineral reserves, African countries capture limited downstream value. In the Democratic Republic of the Congo, for example, cobalt dominates export earnings, yet most refining and battery manufacturing occurs خارج the continent.

By increasing state participation and restricting raw exports, policymakers aim to accelerate industrialisation, deepen supply chains, and improve fiscal returns.

While the reforms could boost long-term value addition and public revenues, they may also reshape investor dynamics, particularly around project financing, regulatory risk, and partnership structures.

Mozambique’s policy direction positions it among a growing group of African producers leveraging mineral wealth more strategically in a tightening global commodities market.