Mozambique expects to produce more than 329,000 tonnes of graphite next year, the raw material needed to produce batteries for electric vehicles, an increase of more than 180% on this year’s performance, according to the government’s forecast.
In the documents supporting the proposal for the Economic and Social Plan of the State Budget (PESOE) for 2024, the Mozambican government states that graphite production “will increase significantly” next year, compared to the 2023 projections.
For the estimate, the document reads, the plans of the two companies to produce this mineral were taken into account, despite the fact that by the first half of 2023 it would be “22% realised”, due to the “weak demand for this ore on the international market”, which led Twigg Mining and Exploration [a subsidiary of Syrah Resources Limitada], the largest producer, “to temporarily interrupt its mining and processing activities in the months of May and June”.
According to the government data included in the report, which will be discussed and then voted on at the 8th ordinary parliamentary session, which is taking place in Maputo from 19 October to 21 December, the estimated production of 329,000 tonnes of graphite in 2024 represents an increase of 180.2% compared to what is expected for this year.
Mozambique produced 120,000 tonnes of graphite in 2020, a performance that fell to 77,100 tonnes the following year, while the estimates for 2022 and 2023 were 182,100 and 117,400 tonnes respectively.
Meanwhile, at the end of August, the Mozambican government, through the Ministry of Mineral Resources and Energy (MIREME), admitted that the decision by the Australian mining company Syrah Resources to suspend graphite production in the country jeopardises the quantity and revenue targets that the state had projected.
On 18 July, the Australian mining company Syrah Resources announced that it would produce 15,000 tonnes of graphite in April for electric car batteries, which it exports from the Balama district in Cabo Delgado province, northern Mozambique. However, this production was interrupted the following month due to stocks and prices on the international markets.
Speaking to Lusa, the national director of Geology and Mines, Cândido Rangeiro, pointed out that the measure could jeopardise this year’s graphite production projections and the revenue for the state generated by this ore.
“We are saddened by this, because we actually had projections for graphite production and this target will probably not be reached,” emphasised Rangeiro.
