Graphite production in the country fell sharply by 60.1 per cent in the first quarter of 2024, reaching just 3 per cent of its annual plan. In the first three months of the year, 11,419 tonnes of graphite were produced, significantly less than the 28,608 tonnes produced in the same period of 2023, according to the newspaper Noticias.
According to the budget execution report for the first three months of the year, this negative performance is attributed to the paralysation of GK Ancuabe Graphite Mine, S.A.’s activities in 2023 and the interruption of Twigg Mining and Exploration’s work. “Twigg’s operations at the Balama plant were interrupted due to a lack of production in May and June 2023, caused by the volatility of the Chinese market and the absence of ‘stock’ of finished products. In addition, GK Ancuabe faced financial problems that resulted in non-payment of wages for its labour force,” the note reads.
The document explains that the downward trend has been evident over the last few years. In 2021, 77,000 tonnes of graphite were produced, while in 2022 the figure increased to 165,900 tonnes. However, in 2023, production fell dramatically to 97,346 tonnes.
With regard to construction materials, the report indicates that the production of sand and building stone and granite in blocks saw a 14.2 per cent and 33 per cent realisation, respectively, compared to the annual plan. “This behaviour reflects an increase of 3.3% for stone and granite blocks, but a decrease of 25.5% for construction sand, due to the impassability of access roads during the rainy season,” the report points out.
According to the budget execution report, minerals and energy dominated the volume of Mozambique’s exports last year, accounting for 90 per cent of the products traded. Only 10 per cent of exports were related to diversified products, especially agricultural products. “This context contributed to the country achieving a favourable trade balance, set at 42.6 billion meticals (673.4 million dollars), resulting from traded exports,” the document concludes.
