This Tuesday (22), in the Council of Ministers, the government approved the terms of a Direct Agreement with TWIGG Exploration and Mining, Lda. to expand operations at the Balama Mine in Cabo Delgado, with a focus on vanadium exploration. The agreement, signed between the parties, aims to ensure that the United States International Development Finance Corporation (IFC) will finance the operating and maintenance costs of the mine, as well as carrying out a feasibility study for the installation of a vanadium processing unit.
According to an official statement from the Council of Ministers, the vanadium project is part of the strategy to expand the existing graphite extraction project at the Balama mine, operated by TWIGG, a subsidiary of Syrah Resources Limited.
Vanadium is a strategic mineral, widely used in metal alloys and battery production, which makes this agreement an important milestone for Mozambique’s extractive sector.
The government considers this project vital for the country’s economic development, given the potential for job creation and tax revenue generation, as well as boosting Mozambique’s position in the global market for minerals essential for the high-tech industry.
TWIGG, which has already made a name for itself on the national mining scene, was awarded ‘Mining Company of the Year’ at the Mozambique Mining and Energy Conference last May, in recognition of its commitment to innovation and sustainability.
The company is also classified as one of the most transparent in the sector, according to the 2023 Extractive Sector Transparency Index, drawn up by the Centre for Public Integrity (CIP).
TWIGG was awarded ‘Mining Company of the Year’ at the Mozambique Mining and Energy Conference last May, in recognition of its commitment to innovation and sustainability.
The direct agreement establishes that TWIGG will conduct a feasibility study to assess the possibility of developing a vanadium processing operation in Balama, a document that will be essential for determining the economic and technical potential of building a local unit, which will make it possible to add greater value to the resource extracted and reduce dependence on processing services outside the country.
This agreement reflects the government’s commitment to promoting the diversification of the mining sector and the sustainable utilisation of natural resources, ensuring that extractive operations benefit local communities.
The investment in vanadium exploration, along with graphite, is seen as an opportunity for Mozambique to consolidate its position as a key supplier of critical minerals for the global economy, especially in the energy and technology sectors.
With the expansion of the vanadium project, the country will be able to attract new investments in the mining sector and increase its exports of high value-added products, thus contributing to the country’s sustained economic growth.
