The Chinese company DH Mining Development Limited is investing more than 1.9 billion meticals (US$29.4 million) in graphite production operations at the Muichi mine in the district of Napepe. This is the first processing of this mineral in the province of Niassa, in northern Mozambique, and work began on 5 May.
According to local authorities, the project has an initial production capacity of 100,000 tonnes per year, which is expected to double after the completion of the second line, highlighting that the expectation is for increased employment in the district, which has about 56,000 inhabitants.
‘It has been a long wait, but the day has come. The project comes to give hope to Mozambicans and increase jobs for residents in that area, avoiding conflicts such as those seen in other mining areas,’ said Nipepe district administrator Sérgio Igua.
He explained that, to facilitate the graphite export process, DH Mining Development will transport it by road between Nipepe and the port of Nacala, in Nampula province, and then by sea.
According to projections, the Muichi mine has estimated reserves of 8 million tonnes and its exploitation is part of a government effort to increase graphite production in Mozambique. In addition to the graphite mine, the Muichi area also has a hydroelectric project, which is currently being implemented, with the aim of supplying energy to local communities and the industrial sector.
Graphite production for electric vehicle batteries fell by 64% in 2024 to 34,899 tonnes — one of the lowest levels in recent years — according to government data released in February.
The Ministry of Finance’s Budget Execution Report for 2024 indicates that this decline corresponded to only 11% of the annual target of 329,000 tonnes and was mainly due to the shutdown of operations at the GK Ancuabe Graphite Mine in 2023.
‘The reduction was also influenced by the interruption of activities at Twigg Mining and Exploration (part of the Australian Syrah group), given the growing presence of synthetic graphite on the international market, exacerbated by labour disputes that culminated in the suspension of mining activities,’ the document states.
