• New graphite plant launched in Niassa with 200,000-ton annual capacity

• Project comes after production fell sharply in 2024

• Chinese and U.S. capital support key graphite assets

Mozambique inaugurated a new graphite production plant in Niassa province late last week, with an estimated investment of $200 million. The project marks a significant development for a mining sector that has lost momentum in recent years amid persistent global market pressures.

Shutdowns and gradual restart

Until 2023, graphite production in Mozambique relied mainly on the Balama mine, operated by Australia’s Syrah Resources, and the Ancuabe mine, owned by Dutch group AMG. Faced with a weak market marked by competition from synthetic graphite and falling prices and demand for natural graphite, both companies gradually adjusted their strategies.

In 2024, AMG confirmed its exit from Mozambique with the closure of the Ancuabe mine. Balama, for its part, became inactive from mid-2024 and only resumed operations in June 2025 under a campaign-based model. This approach involves controlled production volumes, far from continuous full-capacity output, and is driven entirely by market demand. These developments led to a decline in national graphite production in 2024.

According to the U.S. Geological Survey, Mozambique’s graphite output fell from 98,000 tons in 2023 to 75,000 tons in 2024. It is against this backdrop that the new Nipepe project, developed by Chinese company DH Mining, has been launched. Located in the Nipepe district, the mine has an average annual production capacity of 200,000 tons of graphite over a 25-year operating life.

Available data show that the project currently employs about 890 people. A second phase is expected to raise employment to 2,000. Limited information has been disclosed so far on the mine plan, including production targets for 2026.

Chinese and U.S. capital back the sector

While details on Nipepe remain limited, Mozambique also hosts another advanced graphite asset at Ancuabe. Located near AMG’s former mine, the project is operated by Australia’s Triton Minerals, which is seeking to reduce its 100% stake. An agreement is under way with China’s Shandong Yulong, which plans to invest $17 million to acquire a 70% interest.

The deal includes an option for Shandong Yulong to acquire the remaining 30% held by Triton, although no decision has yet been taken. Under this transaction, the Chinese group would eventually oversee the development of the mine, which is expected to produce an average of 60,000 tons of graphite per year over 27 years. Chinese involvement is complemented by U.S. interests at Balama, where the U.S. Development Finance Corporation provides financial support to Syrah Resources for its operations.

Syrah Resources has said it plans to return to higher utilization rates at Balama once demand for natural graphite improves. Considered Africa’s largest graphite mine, Balama has a production capacity of 350,000 tons and supplies a mineral widely used in electric vehicle batteries.

In Mozambique, graphite ranks among the country’s main mineral products, alongside coal and gemstones, particularly rubies. Gold is also produced, but in relatively modest quantities.

Aurel Sèdjro Houenou