en.Wedoany.com Reported - Mozambican President Daniel Chapo has signed a new mining law requiring all mining companies to cede 15% of their shares to the state and process minerals locally, in order to strengthen control over strategic resources.

Mozambique is the world's third-largest producer of graphite, a key raw material for electric vehicles and energy storage batteries. The mining law, approved by parliament in May and published in a government gazette on June 3, aims to strengthen Mozambique's "management of strategic resources in the national interest."

Part of the new law states: "The state, through the National Mining Company (ENM), shall have a minimum 15% free-carried and non-dilutable participation right in any stage of the value chain of all mining projects." It remains unclear whether the new regulations apply to existing mines, most of which are covered by long-term agreements. The Ministry of Mining has not yet commented on the matter.

This move places Mozambique among a growing number of African countries tightening controls on raw material exports. These countries include Zimbabwe, the continent's largest lithium producer, and the Democratic Republic of Congo, the world's leading cobalt producer and a major copper supplier, all aiming to derive greater economic benefits from their resources.

Mozambique is home to one of the world's largest graphite deposits, located at the Balama mine operated by Syrah Resources in the north of the country. According to the U.S. Geological Survey, China and Madagascar are the top two graphite producers. The northern region also hosts the world's largest ruby mine, the Montepuez mine owned by Gemfields, and holds substantial coal assets previously owned by Rio Tinto and Brazil's Vale.

The new regulations explicitly prohibit the export of raw or semi-processed mineral products unless specific ministerial authorization is granted under an approved final local processing plan.

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