Government Tightens Mining Rules, Pushes Investors Toward Local Processing
Mozambique has introduced sweeping changes to its mining sector that could reshape how foreign companies invest in the country’s mineral resources, with new rules placing greater emphasis on state participation and local processing.
The new Mining Law, Law No. 7/2026, gives the government a minimum 15 per cent free-carried stake in mining projects through the state-owned Empresa Nacional de Minas (ENM). The arrangement allows the state to hold an interest without contributing capital for that share.
The law also changes the way minerals produced in Mozambique can be marketed. At least 20 per cent of ore produced in the country must be allocated to the domestic market, while companies face tighter requirements to process minerals locally rather than exporting them in raw form.
The government has given ENM a central role in projects involving strategic minerals, with the state-owned company responsible for managing rights covering their exploration, extraction, processing and marketing. Private investors seeking to operate in these areas will therefore have to work through arrangements involving ENM.
The reforms could increase the cost and complexity of developing mining projects, particularly for companies built around extracting minerals and shipping them abroad for processing. Investors may now need to include processing facilities, domestic supply arrangements and state participation in their project plans from the beginning.
Mozambique is a major producer of minerals including graphite, coal and heavy mineral sands. The government’s latest policy seeks to capture more economic value from these resources within the country, although the impact on future investment will depend partly on how the new law is implemented and how regulations governing strategic minerals and local processing are applied.
The changes signal a broader shift in Mozambique’s mining policy from simply attracting extraction investment towards using mineral wealth to support domestic industrial development.
