Mozambique Proposes Mining Overhaul with State Equity and Raw Export Ban
Mozambique Mining Reform: 15% State Stake and Ban on Raw Mineral Exports Proposed
Mozambique is moving to strengthen state control over its mineral resources through sweeping reforms that would require a minimum 15% government stake in all mining projects and ban the export of unprocessed minerals.
A draft revision of the country’s mining law, scheduled for parliamentary debate on May 7, signals a major policy shift aimed at increasing domestic value addition and ensuring more resource revenue remains within the national economy.
Authorities argue that the current legal framework unchanged for over a decade contains structural gaps that limit the state’s ability to fully benefit from its mineral wealth.
Under the proposed reforms, the state, through the national mining company ENM, would hold at least a 15% equity stake in mining projects, with potential for higher participation.
The reforms also introduce stricter rules across the mining value chain, including incentives for local mineral processing, the creation of designated artisanal mining zones, and tighter regulatory oversight.
Exploration licences would be valid for two to five years, while mining concessions could extend up to 25 years.
In addition, 10% of mining revenues would be allocated to a dedicated local development fund.
Daniel Chapo said the reforms are designed to ensure mineral resources become long-term drivers of economic and social development, supporting job creation, local enterprise growth, and public services.
Rising Resource Nationalism Across Africa
Mozambique’s proposal reflects a broader shift across Africa, where governments are increasingly reasserting control over natural resources after decades of export-driven extraction models.
In West Africa, members of the Alliance of Sahel States including Mali, Burkina Faso, and Niger have introduced similar reforms to increase state ownership and local participation in mining.
Mali raised state and local ownership in mining projects to as high as 35% and recovered around $1.2 billion in arrears following sector audits.
Burkina Faso has also increased state involvement in gold assets, with mining contributing roughly 16–17% of GDP.
Elsewhere, Ghana Africa’s largest gold producer has tightened environmental and regulatory controls, including restrictions on mining in forest reserves and stricter oversight of small-scale operations.
Capturing More Value from Mineral Wealth
At the core of these reforms is a shared challenge: while Africa holds some of the world’s richest mineral reserves, it captures only a small share of the value created.
For example, the Democratic Republic of the Congo produces over 60% of global cobalt, yet most refining and battery production takes place outside the continent.
By increasing state ownership and restricting raw mineral exports, governments aim to promote local processing, accelerate industrialisation, and retain more revenue domestically.
With global demand rising for critical minerals used in energy transition technologies, African countries are increasingly positioning their resources as strategic economic assets rather than simple export commodities.
