TANZANIA, MOZAMBIQUE TO PRODUCE GRAPHITE

Tanzania and Mozambique are seeking to become graphite producers to meet the growing global demand for the commodity.

Private firms from both countries are either exploring licensed tenements to quantify resources or moving projects with vast deposits to pre-production stage.

Consulting firm Stormcrow Capital Ltd said the graphite market can handle at least 300,000 tonnes of new production by 2020. A tonne of high quality graphite is predicted to cost $6,175 in five years.

Dominant player

China has dominated global output, producing about 70 per cent of the world’s graphite, but this is expected to decrease as the country curtails production due to environmental concerns.

Demand is being driven by increased use of graphite in the making of lithium-ion batteries, lubricants, steel, iron and brake linings among other items. Lithium-ion batteries are preferred for use in electric vehicles.

Magnis Resources Ltd, Kibaran Resources Ltd and IMX Resources Ltd operating in Tanzania, and Mozambique-based Syrah Resources Ltd, Metals of Africa Ltd and Triton Minerals Inc are set to produce the mineral.

Kibaran Resources of Australia is carrying out a feasibility study of the Epanko graphite project near Morogo town in Tanzania. Managing director Andrew Spinks said the project will provide an alternative long-term term supply of superior quality graphite.

“The future growth in demand for expanded graphite is significant, given its electrical and thermal conductive properties for use in applications such as building products, fire retardants and military applications,” he said.

Kibaran’s Mererani East graphite project in the northeast of Tanzania near Arusha also has commercially viable graphite given recent metallurgical results.

READ: Kibaran raises funds for graphite project

“Mererani provides significant support and depth to the company’s ability to broaden its product supply base,” said Mr Spinks.

Mozambique has issued an environmental licence to develop the Balama graphite project to Australian Stock Exchange-listed Syrah Resources Ltd.

Syrah’s managing director Talga Kumova said the licence will ensure that the Balama project will be operated to the highest environmental standards.

“We have been working proactively with stakeholders. The awarding of the environment licence is the culmination of two years of community consultation, base line studies and environmental impact assessments,” Mr Kumova said.

The East African