Mozambique will take a 15% stake in domestic mining ventures and push for minerals to be processed locally by prohibiting companies from exporting non-processed resources.
The southern African nation is the latest on the continent to pursue more government ownership of minerals, especially for elements critical to the global energy transition.
It is the world’s third largest producer of graphite, a mineral used to make batteries, and has significant quantities of gold, copper, titanium, and tantalum, another mineral of high demand by electronics makers.
Several African nations have imposed new rules in recent years to benefit from their mineral resources. Last week, DR Congo added lithium to a list of strategic minerals that are subject to increased royalties, as part of the government’s drive to boost revenues and Zimbabwe banned exports of all raw minerals last year to favour “in-country value addition.” But some mining experts point out that this is not necessarily a good strategy because smelting and refining is arguably the most volatile part of the minerals value chain. In situations where mined materials are in short supply, for example, processors must pay for their feedstock.