Mozambique’s mining sector is facing renewed debate following the introduction of amendments to the country’s mining legislation.The new law requires the Mozambican state to hold a minimum 15% stake in all mining ventures operating in the country.Government officials say the changes are intended to strengthen national control over strategic mineral resources and protect the national interest.

However, representatives of the mining industry have expressed concern that the measure could reduce Mozambique’s attractiveness to foreign investors.

Speaking at a mining conference in Victoria Falls, Zimbabwe, Chamber of Mines vice-president Geert Kolk warned that the compulsory state stake may discourage international capital from entering the sector.

According to the industry body, investors could view the requirement as an additional cost or risk when evaluating mining opportunities in Mozambique.The legislation also introduces restrictions on the export of unprocessed or semi-processed minerals.

Companies will generally be expected to process minerals locally before export, unless they obtain ministerial approval linked to plans for domestic beneficiation.

While the Chamber of Mines supports the objective of increasing local value addition and processing capacity, it argues that governments must also ensure reliable infrastructure, including electricity supply, water resources and transport networks, to make such investments commercially viable.Mozambique is an important global producer of graphite, a mineral widely used in electric vehicle batteries and energy storage technologies.The country hosts the Balama graphite mine operated by Syrah Resources and the Montepuez ruby mine owned by Gemfields.Mozambique also possesses substantial coal reserves and remains a significant mining destination in Southern Africa.

The debate highlights the challenge of balancing national resource ownership objectives with the need to attract foreign investment and promote long-term sector growth.