Green Mineral Profile

Graphite

Overview

Overview

Mozambique, Madagascar, and Tanzania together hold 69 million tonnes of graphite reserves, making up 21% of global reserves. In 2021, Mozambique and Madagascar were the third largest producers of graphite, each accounting for 6% of global production. Significant mining operations in these countries include the Balama Mining Project in Mozambique, the Molo Mining Project in Madagascar, and the Bunyu Mining Project in Tanzania. The main export destinations for graphite from these countries include Germany, the USA, China, and India. 

The African Continental Free Trade Area (AfCFTA) has the potential to help develop regional supply chains, while investments are needed in graphite processing to capitalize on potential supply chain disruptions. 

Overview

Graphite reserves

Mozambique, Madagascar, and Tanzania are the major countries in Africa’s graphite supply chain and have a combined 69,000,000 metric tons in graphite reserves which constitute 21% of total global graphite reserves. 

Tanzania held reserves of 18 million metric tons, accounting for 5% of global graphite reserves in 2021.

The top five countries globally with the largest share of graphite reserves are Turkey (27%); Brazil (22%); China (16%);  Madagascar (8%); and Mozambique (8%). 

Madagascar
0 %
Share of global reserves
(26,000,000 metric tons)
Mozambique
0 %
Share of global reserves
(25,000,000 metric tons)
Tanzania
0 %
Share of global reserves
(18,000,000 metric tons)

Graphite production

Mozambique and Madagascar were tied as the third largest producers globally of graphite in 2021. 

Mozambique and Madagascar accounted for 6% of global production each in 2021, with a total production of 142,000 metric tons. Both countries held 8% of global graphite reserves each with the total reserves of 51,000,000 metric tons.

Mozambique
0 %
Share of global production
(72,000 metric tons)
Madagascar
0 %
Share of global production
(70,000 metric tons)
Tanzania
0 %
Share of global production
(8,000 metric tons)
Pattern

Major graphite
mining projects

Mozambique Mozambique

The Balama mine is located on a mining concession within the Cabo Delgado province in the district of Namuno, northern Mozambique, and is one of the world’s largest high-grade graphite deposits. The mine is owned and operated by Syrah Resources, an Australian company, which officially opened the mine in 2018. 

Madagascar Madagascar

The Molo mine is located in the Toliara province and is a superior quality graphite deposit that can achieve near battery grade purity. The mine ranks as one of the largest known and highest quality flake graphite deposits in the world. The project is fully owned and operated by NextSource Materials, a Canadian mining company. 

Tanzania Tanzania

The Bunyu site is the largest of several graphite projects to launch in Tanzania in recent years, following the discovery in 2016 of substantial graphite deposits in the country. Australia-based developers, Volt Resources, are currently developing the project, which has the capacity to produce 100,000 tons of graphite per annum. 

Main copper export destinations

Mozambique Mozambique exports in 2020
Germany ($4.76 million)
United States ($3.36 million)
Austria ($3.17 million)
India ($1.16 million)
Turkey ($0.8 million)
Madagascar Madagascar exports in 2020
China ($6.49 million)
India ($3.4 million)
United States ($2.11 million)
Germany ($1.44 million)
Turkey ($0.8 million)
Tanzania Tanzania exports in 2020
China ($0.8 million)
India ($0.18 million)
Turkey ($0.01 million)
South Korea ($0.01 million)
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Processing capacity

Processing capacity

The manufacturing stage of the graphite supply chain does not take place in Africa and so the value-adding stages are outside the continent, leading to reduced income. As it currently stands graphite concentrate is shipped overseas, typically to China, and the supply chain leaves Africa at the end of the mining stage. 

While pockets of technological capabilities and productive opportunities exist in South Africa, the value chain is still emerging and remains disarticulated, with different levels of development along the chain. Outside South Africa, domestic technological capabilities in mining value chain are limited to some extraction activities and processing of concentrates; however, high-value downstream activities such as manufacturing of batteries are almost non-existent. 

Processing capacity

Value addition initiatives

It was reported in September 2023 that EcoGraf is exploring four potential locations, namely Dar es Salaam, Kwala, Ifakara and Mahenge in Tanzania, to develop a 20ktpy battery anode material (BAM) processing facility to produce unpurified spherical graphite. It was further reported that NextSource is developing a spherical graphite facility in Port Loui, Mauritius to produce coated spherical graphite, with production planned for the final quarter of 2024.

Recently, Australian mining company, Syrah Resources signed an agreement with American automaker Tesla to supply graphite anode from its Balama mine in Mozambique. Graphite from the Balama mine will be exported to a new Syrah facility in the US (funded with a loan from the US Department of Energy) where the concentrate will be processed into natural graphite active anode material for electric vehicle batteries.