Mozambique Mining: Good news for Mozambique-focused graphite firms

While the Tanzanian government’s decision has brought uncertainty for companies in the country, it has been a boon for graphite-focused companies in neighboring Mozambique. 

Syrah Resources (ASX:SYR), which is developing its Balama graphite project in Mozambique, had seen its share price rise 19.13 percent over the five days ended July 11.

Triton Minerals (ASX:TON) experienced an almost equal gain in share price over the same period. Triton has an 80-percent stake in holding company Grafex Limitada, which is working on three graphite projects in Mozambique.

Mozambique has 13,000 tons of inferred graphite reserves and Tanzania has 5,100 tons, according to US Geological Survey data.

China continued to be the largest producer and exporter of graphite in 2016, providing 66 percent of the global supply; it was followed by India and Brazil in second and third place, respectively.

By the year 2026, graphite’s number-one demand driver is expected to be lithium-ion batteries, which are used in electric vehicles.