An estimated investment of between 150 and 200 million dollars marks a new milestone in Mozambique’s mining strategy. The country inaugurated, on January 30, in the Niassa province, a graphite processing plant with an annual capacity of 200,000 tons, illustrating its commitment to strengthening the local processing of its mineral resources and capturing more added value from the extractive sector.
This industrial infrastructure, inaugurated by President Daniel Francisco Chapo, is part of a broader policy of economic diversification and industrial upgrading. Developed in partnership with Chinese investors, the project aims to attract more foreign capital while consolidating Mozambique’s position in the global graphite market, a strategic mineral for energy transition technologies.
Graphite, a naturally occurring carbon mineral, is widely used in many industrial sectors. It plays a central role in the manufacture of anodes for electric vehicle batteries, electric motors, as well as in industrial furnaces, due to its high resistance to high temperatures and conductive properties. This growing demand gives graphite a status of critical mineral, at the heart of the new global energy value chains.
The extractive sector remains a pillar of the Mozambican economy, contributing to around 11% of the gross domestic product (GDP). The new plant already employs nearly 1,000 workers and could generate up to 2,000 direct jobs at full capacity. Beyond employment, the project is expected to stimulate related activities, including services, logistics, and local infrastructure.
According to Ecomnews Africa, Mozambique has significant graphite reserves estimated at nearly 25 million tons, making it the largest holder of reserves on the African continent and a large-scale producer. Madagascar ranks as the second producer, while Tanzania is rapidly developing its capacities.
Furthermore, in a report published in August 2022, the Wood Mackenzie consultancy anticipates that Africa will become the world’s leading producer of natural graphite by 2026. By that time, African production is expected to represent 40% of the global supply, up from 15% in 2021, surpassing China, whose market share is expected to decline to 35%.
