Mozambique and South Africa Overhaul Mining Laws to Increase State Stakes and Attract Investment

Mozambique has passed sweeping mining legislation that obliges the state to hold at least a 15% free‑carried, non‑dilutable stake in every mining project and restricts the export of unprocessed minerals. The law, signed by President Daniel Chapo, also creates a local development fund receiving 10% of mining revenues and aims to secure more value from the country’s graphite, coal and ruby resources amid rising global demand for battery minerals.

In South Africa, industry experts argue that the current Mineral and Petroleum Resources Development Act has made the mining sector “uninvestable.” They propose the Growth and Employment in Mining (GEM) Bill to replace the act, limiting mining‑rights cancellations to fraud or material breaches, requiring fair‑market compensation for expropriations, and removing race‑based empowerment clauses. The bill also seeks to make beneficiation requirements realistic given the country’s energy constraints, with the goal of restoring investor confidence and boosting exploration.