The Ministry of Mineral Resources and Energy (MIREME) reaffirmed, during the 10th Coordinating Council, the need to establish an entity to represent the State’s participation in mining ventures, the institution reported in a statement.
Meeting in Macaneta, Marracuene District, the Ministry discussed the issue under the theme: “Promoting Local Access and Use of Mineral and Energy Resources Towards Integrated Development of Mozambique.”
In his closing speech, the Minister of Mineral Resources and Energy, Estêvão Pale, expressed satisfaction with the results achieved during the harmonization process of contributions gathered through public consultations conducted as part of the review of the legal framework.
Regarding the Mining Law, for example, consensus on mandatory State participation in all mining ventures is seen as a potential source of greater benefits for the country and its citizens.
To ensure active participation, Estêvão Pale stated that it is essential to grant the State a minimum 20% stake in mining titles for areas containing strategic and critical minerals. Once approved, the new Mining Law will mark “the beginning of a new era” for the mining sector, he added.
MIREME has been leading the review of the legal framework for the mineral, energy, and mining sectors since the end of March 2025, promoting discussions across the country.
State Participation in Mining Projects in Africa: Models and Trends
Mandatory State participation in mining ventures—whether through already established public companies or by defining minimum stakes—is a consolidated practice in several African countries. The measure aims to ensure that States capture a significant portion of the economic and strategic benefits resulting from the exploitation of their natural resources, especially when dealing with critical minerals.
Reference African Models
Among neighboring countries, Botswana stands out with emblematic State participation: the Debswana joint venture between the Government and De Beers guarantees equal sharing (50%) in the largest diamond projects. In South Africa, the approach is different, favoring socio-economic empowerment policies through Black Economic Empowerment (BEE), while still allowing for direct State intervention in certain strategic resources.
In Angola, for instance, Endiama (diamonds) and Ferrangol (iron) are central vehicles for State presence in the sector, with legislation providing stakes ranging from 10% to 51% in major projects.
In Ghana, the law guarantees the State a minimum 10% participation (“carried interest”) in all mining concessions, without financial contribution.
In Guinea, the Mining Code grants the State a free and non-dilutable 15% stake in all mining rights, with the possibility of acquiring additional participation under commercial conditions.
In Nigeria, another resource-rich country, mandatory State participation is less rigid, but strategic resources, such as uranium, may require direct involvement of public companies or partnerships with the Government.
Trends and Considerations
African experience shows that minimum State participation tends to vary depending on the nature of the mineral and its strategic value for national development. Critical minerals associated with energy, industrial, or technological security are subject to greater Government control.
Implementation of this model can be done through existing public companies or new entities created specifically to represent the State’s interest. This is precisely the path Mozambique is considering, with the proposal to introduce a minimum 20% stake in projects involving critical minerals.
Source: Diário Económico
