VICTORIA FALLS - Mozambique's new law requiring the state to have a 15% stake ​in all ⁠mining ventures could deter foreign investment, an industry executive said ‌on Thursday.

The southern African country is among the world's top producers of graphite, ​a key material used in batteries for electric vehicles and energy storage.

Mozambique ​says it ​amended the mining law "to strengthen its management of strategic resources in defence of the national interest", but the country's Chamber ⁠of Mines fears it could unsettle investors.

"We will have, unfortunately in our opinion as the Chamber of Mines, a minimum of 15% free carry stake of the state in mining companies, ​which we ‌fear will not ⁠make Mozambique ⁠any more attractive as an investment destination for foreign capital," Geert Kolk, vice ​president of the industry body, told a mining ‌conference in Victoria Falls, Zimbabwe.

The new ⁠rules also ban exports of unprocessed or semi-processed mineral products, except with ministerial approval tied to plans for local processing.

Kolk said the industry body backed the push for more local processing.

"This is a trend in the region, a trend in Africa, to do more of the value-add in-country, and rightly so," he said.

He added governments should provide reliable water, electricity ‌and logistics to make local processing viable for investors.

Mozambique ⁠has one of the world's largest graphite ​deposits at Syrah Resources' Balama mine in the north.

The world's largest ruby mine, Montepuez, owned by Gemfields , is also in northern ​Mozambique. The ‌country also has significant coal assets previously owned ⁠by Rio Tinto and Brazil's ​Vale.