Graphite suppliers in Africa are increasing production to meet China’s growing demand for battery materials. According to data from Roskill, in the first half of 2019, natural graphite exports from Africa to China increased by more than 170%. Mozambique is Africa’s largest exporter of graphite. It mainly supplies small and medium-sized graphite flakes for battery applications. This southern African country exported 100,000 tons of graphite in the first six months of 2019, of which 82% were exported to China. From another perspective, the country exported 51,800 tons in 2018 and exported only 800 tons in the previous year. The exponential growth in Mozambique’s graphite shipments is largely attributable to Syrah Resources and its Balama project, which was launched at the end of 2017. Last year’s graphite production was 104,000 tons, and production in the first half of 2019 has reached 92,000 tons.
Roskill estimates that from 2018-2028, the battery industry’s demand for natural graphite will grow at a rate of 19% per year. This will result in a total graphite demand of nearly 1.7 million tons, so even if the Balama project reaches a full capacity of 350,000 tons per year, the battery industry will still need additional graphite supplies for a long time. For larger sheets, their end consumer industries (such as flame retardants, gaskets, etc.) are much smaller than the battery industry, but demand from China is still growing. Madagascar is one of the major producers of large graphite flakes. In recent years, the island’s graphite exports have grown rapidly, from 9,400 tons in 2017 to 46,900 tons in 2018 and 32,500 tons in the first half of 2019. The famous graphite producers in Madagascar include the Tirupati Graphite Group, Tablissements Gallois and Bass Metals of Australia. Tanzania is becoming a major graphite producer, and the government has recently re-issued mining licenses, and many graphite projects will be approved this year.
One of the new graphite projects is the Mahenge project of Heiyan Mining, which completed a new definitive feasibility study (DFS) in July to estimate its annual yield of graphite concentrate. 250,000 tons increased to 340,000 tons. Another mining company, Walkabout Resources, also released a new final feasibility report this year and is preparing for the construction of the Lindi Jumbo mine. Many other Tanzanian graphite projects are already in the stage of attracting investment, and these new projects are expected to further promote Africa’s graphite trade with China.
Post time: Sep-05-2019