Africa-Press. An executive in the mining sector stated that the new law in Mozambique, which requires the state to hold a 15% stake in all mining projects, may deter foreign investment. The country, located in Southern Africa, is among the largest producers of graphite in the world, a key material used in electric vehicle batteries and energy storage.
Mozambique claims it has amended its mining law “to enhance its management of strategic resources in defense of national interest,” but the country’s mining chamber fears this could destabilize investors.
“Unfortunately, we will have, in our view as the mining chamber, a stake of no less than 15% of state shares in mining companies, which we fear will make Mozambique less attractive as an investment destination for foreign capital,” said Gert Kolk, vice president of the industrial body, at a mining conference in Victoria Falls, Zimbabwe.
The new regulations also prohibit the export of unprocessed or semi-processed mineral products unless approved by the ministry in connection with local processing plans.
Kolk stated that the industrial body supports the move towards more local processing, adding, “This is a prevailing trend in the region, and a prevailing trend in Africa, which is to increase added value within the country, and this is correct.” He noted that governments need to provide reliable water, electricity, and logistics services to make local processing viable for investors.
It is worth mentioning that Mozambique has one of the largest graphite deposits in the world at Syrah Resources and the Balama mine in the north.
