Good afternoon. As we noted on Monday, Mozambique appears to be joining an increasing trend in southern Africa to insist on in-country processing of mineral resources. But news coming from Balama this week, home to a major graphite mine, is a reminder that Mozambique may not hold all the cards when it comes to these resources.
Low demand for Syrah Resources’ graphite from Chinese battery producers has meant the mine has been standing idle since May, with apparently little prospect of work restarting there soon. This is not to say that the mine’s viability is in doubt; long-term, it will be — as it already is — a significant source of graphite for the electric vehicle industry worldwide.
