Mozambique Considers Ban on Raw Mineral Exports to Boost Local Processing

Mozambique's Ministry of Mineral Resources and Energy is contemplating a significant policy shift by banning raw mineral resource exports. The objective is to foster local processing and industrialization, aiming to increase processed exports and benefit the local population. Minister Carlos Zacarias has been vocal about this initiative, emphasizing the need to enhance the mining sector's contribution to the national economy.

The Mozambican mining sector has attracted numerous multinational companies and legalized exploration activities. However, illegal mining remains a critical challenge, particularly in remote areas of the Manica, Tete, and Cabo Delgado provinces. Many Mozambicans engage in illegal mining to secure their livelihoods, often neglecting environmental and safety regulations.

Minister Zacarias has pointed out that illegal mining is one of the primary challenges facing the country. He stated, "One of the areas where we have major challenges is mining. There are many Mozambicans who engage in illegal mining to guarantee their livelihoods, without observing the environmental and safety rules that are common."

The government has been actively addressing illegal mining activities, especially in regions where natural resources are heavily exploited. In 2021, over 30 people lost their lives due to accidents related to illegal mining, with most incidents occurring in gold and ruby mines. Minister Zacarias highlighted the severity of these accidents, saying, "Sometimes we see cases of serious accidents, which even lead to the death of people."

The proposed ban on raw mineral exports is part of a broader strategy to leverage Mozambique's rich mineral resources for local economic development. Sub-Saharan Africa, including Mozambique, holds approximately 30% of the world's proven critical mineral reserves. The region is already a significant player in global mineral production, with countries like the Democratic Republic of Congo, South Africa, and Ghana leading in reserves of cobalt, manganese, and lithium.

The global transition to clean energy is driving demand for critical minerals. According to the International Energy Agency, the demand for nickel is expected to double, cobalt to triple, and lithium to rise tenfold between 2022 and 2050. This surge in demand is projected to generate significant revenues, with global proceeds from copper, nickel, cobalt, and lithium extraction estimated to reach $16 trillion over the next 25 years. Sub-Saharan Africa stands to gain over 10% of these revenues, potentially increasing the region's GDP by 12% or more by 2050.

In conclusion, Mozambique's consideration of a ban on raw mineral exports aims to harness local resources for economic growth and industrialization. By addressing the challenges of illegal mining and promoting local processing, the country seeks to maximize the benefits of its mineral wealth for its population.

Key Takeaways

• Mozambique considers banning raw mineral exports to promote local processing and industrialization.
• Illegal mining is a major challenge in Mozambique, with many engaging in it to secure livelihoods.
• Gov't aims to increase processed exports and benefit local population from mineral wealth.
• Sub-Saharan Africa holds 30% of world's critical mineral reserves, driving demand for clean energy.
• Ban on raw exports could increase Mozambique's GDP by 12% or more by 2050.