Mozambique Moves to Tighten Mining Rules

The proposed reforms would see the Empresa Nacional de Mineração take equity positions across ventures, while also introducing restrictions on the export of unprocessed minerals. The objective is to increase domestic value capture and accelerate industrial development across the extractives sector.

State participation and beneficiation take priority

The draft legislation signals a clear shift toward stronger public participation in Mozambique’s resource economy.

By embedding a minimum state shareholding, authorities aim to ensure that a greater portion of mining revenues remains within the domestic economy. At the same time, the proposed ban on exports of unprocessed minerals is designed to incentivise local processing, aligning Mozambique with a broader continental push toward beneficiation.

The reforms come as policymakers seek to extract more value from key resources, including coal, graphite, titanium, rubies and natural gas.

Updated licensing frameworks are also under consideration. Exploration permits would be granted for two to five years, while mining concessions could extend up to 25 years. In parallel, the introduction of designated zones for artisanal mining is expected to improve oversight and formalisation across the value chain.

Linking mining to local development

A notable feature of the proposal is the allocation of 10% of mining revenues to local development initiatives, targeting infrastructure, employment and social services in affected communities.

President Daniel Chapo has positioned the reforms as a tool for broader economic transformation, emphasising the role of mining in driving inclusive growth and industrialisation.

For domestic businesses, the shift toward local processing could create new opportunities in manufacturing, services and supply chain development.

Part of a wider African trend

Mozambique’s approach reflects a broader wave of resource policy reform across Africa.

Countries such as Mali and Burkina Faso have increased state participation in mining assets, while Ghana has tightened regulations in small-scale mining. The Democratic Republic of the Congo continues to explore policies aimed at expanding domestic processing of critical minerals.

Together, these developments point to a structural shift: African resource-rich economies are prioritising value addition and industrial policy over raw material exports.

Investor implications

For investors, the reforms present a mixed outlook.

Stronger state participation and export restrictions may introduce regulatory complexity and increase project costs. At the same time, the emphasis on beneficiation creates opportunities in processing infrastructure, downstream manufacturing and local partnerships.

The key variable will be implementation.

Clear regulatory frameworks, consistent policy execution and adequate infrastructure will determine whether Mozambique can successfully balance state objectives with private capital requirements.

Mozambique’s proposed mining reforms mark a decisive move toward greater control over resource value chains.

If effectively implemented, the changes could reposition the country as a more integrated player in global supply chains. However, the success of the strategy will depend on maintaining investor confidence while scaling the infrastructure needed to support local processing.

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