Graphite mining set to prosper
The northernmost province of Mozambique, Cabo Delgado, reportedly hosts the largest graphite mine in the world. The Balama mine, operated by Twigg Mining and Exploration, a subsidiary of the Australian company Syrah Resources Limited, produced roughly 43,000 metric tons of the mineral in 2021. Graphite is a major component of batteries used in electric vehicles and energy storage. Therefore, the mineral has turned into an in-demand commodity, with an increasing market value. Although China possesses a significant stake in the global graphite market, Mozambique has been making its way onto the scene. As of 2021, the country’s graphite reserves were estimated at 25 million metric tons, one of the largest worldwide. In the coming years, graphite mined in Mozambique and processed by Syrah in the United States will even supply the electric carmaker Tesla.Prospects of a gas-rich country
Besides holding vast graphite deposits, Cabo Delgado province is also the gateway for exploring another relevant extractive resource in Mozambique: natural gas. Back in 2010, massive gas discoveries in the Rovuma Basin off the northern coast catapulted the country into the international natural gas market and placed it among the largest holders of gas reserves in Africa. Currently, natural gas is produced in the Inhambane province in the country’s south. In 2020, the national gas production reached some 182,500 terajoules, a volume expected to increase with the development of upcoming projects in Cabo Delgado. However, the gas exploitation in the country’s north faces challenges due to insurgency conflicts. At the beginning of 2021, a brutal massacre left a trail of death in Palma, Cabo Delgado’s capital. Since then, natural gas projects in the region have been put on hold.Mining addition to the trade balance
Extractive industries are relevant contributors to Mozambique's export trade. Metals, minerals, and fossil fuels constitute the leading commodities traded internationally. As of 2021, Mozambique shipped metals and minerals worth 1.8 billion U.S. dollars, a result mainly pushed by aluminum, titanium, and gold trade. That same year, the export value of fossil fuels totaled 1.1 billion U.S. dollars, registering the first decrease since 2017, when it peaked at 3.9 billion U.S. dollars. Owning one of the most prominent coal productions in Africa, Mozambique supplied the international market with over eight million metric tons of coal in 2020, including brown and coking coal. Of these, roughly half had India as buying destination.
