en.Wedoany.com Reported - Mozambican President Daniel Chapo has signed a new law requiring the state to hold a 15% stake in all mining companies and local mineral processors in the country, strengthening control over national resources amid growing demand for battery materials.
Mozambique is the world's third-largest graphite producer, a key material for electric vehicle and energy storage battery production. The government announced on June 3 that the mining law, approved by parliament in May, aims to strengthen the management of strategic resources to safeguard national interests.
According to the content of the new mining law seen by Reuters, the government will acquire, through the state-owned mining company (ENM), a non-dilutable stake of at least 15% in all mining projects at various stages without compensation. It remains unclear whether the new law applies to existing mines, most of which operate under long-term agreements.
Mozambique thus joins a growing list of African countries tightening resource control. Other nations that have intensified control over raw materials to capture more revenue include Zimbabwe, a major lithium concentrate producer, and the Democratic Republic of Congo, the world's largest cobalt producer and a significant copper producer.
Syrah Resources' Balama mine in northern Mozambique is one of the world's largest graphite mines. According to data from the U.S. Geological Survey (USGS), China and Madagascar are the world's largest graphite producers. Gemfields owns the world's largest ruby mine at Montepuez in northern Mozambique. Previously, Rio Tinto and Brazil's Vale held significant coal mines in Mozambique.
The new regulations prohibit companies from exporting unprocessed or semi-processed mineral products unless a special exemption is granted by the minister based on an approved plan for local processing.
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