Mozambique’s president opens Chinese-owned graphite processing plant

Mozambique’s President Daniel Chapo opened a 200,000 metric ton per year graphite processing plant at a Chinese-owned mine on Friday, as the south-east African country boosts output of the battery mineral.

Annual global mined graphite production is 1.6 million metric tons, the United State Geological Survey estimates and Mozambique is one of the world’s top producers of the mineral, which is an excellent conductor of heat and electricity and is used in batteries for electric vehicles and mobile phones.

China has the world’s largest graphite reserves and dominates its mining and processing as well.

Chapo said Mozambique, where French oil major TotalEnergies is resuming construction of a $20 billion liquefied natural gas project, was working to make the most of its natural resources.

“Today we are entering the world’s industrial map,” he said, adding: “We are no longer a supplier of raw materials, but a producer, processor and exporter of materials”.

Chinese company DH Mining, which started work on the graphite mine in Nipepe in 2014, said it had invested $200 million on mining and processing facilities.

DH Mining director Sang Shong said the venture, in Mozambique’s northern province of Niassa, currently employs 890 workers and this is set to rise to 2,000 in its second phase.

Australia’s Syrah Resources and Dutch metals firm AMG have graphite mining operations in neighbouring Cabo Delgado province. Another Australian group, Triton Minerals, is also advancing its Ancuabe project in Cabo Delgado.

(By Custodio Cossa and Nelson Banya; Editing by Alexander Smith)