Mozambique has officially launched a large-scale graphite production and processing plant in the northern Niassa province, marking a major effort to breathe new life into its mining sector. The project, developed by Chinese firm DH Mining, represents an estimated $200 million investment and is designed to produce up to 200,000 tonnes of graphite per year.
The new plant comes against the backdrop of declining graphite output in recent years, when several major operations scaled back due to weak global prices and competition from synthetic substitutes. According to U.S. Geological Survey figures, Mozambique’s graphite production dropped from about 98,000 tonnes in 2023 to roughly 75,000 tonnes in 2024.
At the inauguration, President Daniel Chapo highlighted the strategic importance of the facility for Mozambique’s mining industry and broader economic development, noting that it represents a shift from exporting raw minerals toward processing and adding value domestically.
The project currently employs roughly 890 workers, with plans to expand the workforce to around 2,000 as the second phase of development unfolds.
In addition to DH Mining’s plant, Mozambique’s graphite sector includes other assets supported by both Chinese and U.S. investors. For example, Chinese group Shandong Yulong is progressing a deal to take a majority stake in the Ancuabe graphite project, while the Balama mine, Africa’s largest graphite operation, continues supported by financing from the U.S. Development Finance Corporation.
Graphite remains one of Mozambique’s key mineral products and is essential in the production of batteries for electric vehicles and other technologies, making the new plant an important piece in the country’s broader push to capture more value from its natural resources.
