Mozambique
Overview
Overview
Mozambique’s mining industry plays a significant role in its economy, and the country has abundant reserves in natural resources such as coal, gold, graphite and other minerals. In recent years, the country has attracted foreign direct investment in its graphite sector with the level of graphite production growing steadily.
Despite the growing potential of graphite mining in Mozambique, the country faces several significant challenges that limit its ability to better exploit its mineral resources. Civil unrest following a disputed election outcome, natural disasters that have damaged key infrastructure, and an ongoing terrorist insurgency all pose significant obstacles to the country’s mineral ambitions.
Key green minerals
Major mining
projects
Processing capacity and value-addition initiatives
Processing capacity and value-addition initiatives
While China dominates the world supply and processing of graphite, Eastern African countries, such as Mozambique and Madagascar, are among the top five graphite producers in the world and have seen a significant increase in exploration and production activity in recent years.
At present there is no advanced processing capacity in Mozambique to produce battery-grade graphite or to manufacture the related battery components. This lack of capacity leads to a situation where mineral concentrate is exported to countries such as China, where more advanced graphite processing and manufacturing capacities are located. In short, while Mozambique has significant graphite resources and production facilities, there is limited engagement with the supply chain beyond extraction and initial processing.
Despite encouraging opportunities, Mozambique faces several challenges to realising the potential of its graphite resources. These include infrastructure limitations, civil unrest, and regulatory uncertainty – to name a few. For example, the threat of terrorist groups carrying out attacks on citizens and infrastructure in the mineral-rich Cabo Delgado province is an ongoing concern.
