China has strengthened its grip as the world’s largest graphite producer as a new processing plant is opened in Mozambique. Mozambique’s President Daniel Chapo officially opened the 200,000 metric ton per year plant on 30^th January. Heavily relied on as a battery mineral, China aims to boost its production with the new processing facility. Annual global mined graphite production is 1.6 million metric tons. The data shows that the new graphite processing plant in Mozambique already stands as one of the world’s largest. Moreover, the data is seconded by the United State Geological Survey. Graphite 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. It also supersedes other nations in its processing as well.

Scope of Implementation on the New Graphite Processing Plant in Mozambique

Mozambique is slowly shaping up to be a major hub in the investment of natural minerals and fossil fuels. The president’s announcement comes a day after the $20 billion Mozambique LNG project was restarted following a five-year hiatus. Furthermore, another $30 billion investment in what has been dubbed Africa’s largest LNG project is also taking shape. Located also in Mozambique, the project is being carried out by Exxon.

“Today we are entering the ‍world’s industrial map,” said President Chapo. “We are no longer a supplier of raw materials but a producer, processor and exporter of materials,” he added. 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 also noted that the venture, currently employs 890 workers and this is set to ⁠rise to 2,000 in its second phase. The facility is located in Mozambique’s northern province of Niassa.

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

Project Factsheet:

• Project: Nipepe Graphite Processing Plant.
• Place: Niassa Province, Mozambique.
• Status: Operational (opened 30 January)
• Owner / Developer: DH Mining (China).
• Investment: $200 million

Capacity & Scale

• Processing Capacity: 200,000 metric tons of annual capacity
• Global Context: Also one of the largest processing plants in the world.

Strategic Significance

• Enhances China’s hold in the processing of graphite
• Also supports battery supply chains for EVs and electronics
• Furthermore, it transform Mozambique into raw material producer into value-added producer.

Employment & Expansion

• Present Employees: approximately 890 staff members.
• Phase Two Target: Up to 2,000 jobs

Regional Context

• Part of broader investment surge in northern Mozambique
• Follows restart of the $20bn Mozambique LNG project
• Also runs alongside other graphite projects in Cabo Delgado