Mozambique: Government Discusses Graphite Mines with Investors

Feb. 17, 2010
Maputo The Mozambican government is negotiating with Swiss investors terms for the reopening of the graphite mines in Ancuabe district, in the northern province of Cabo Delgado
The mines were closed in 1999, partly because of difficulties in placing the graphite on the world market, and partly because of the huge costs in electricity. At that time, Ancuabe was not on the national electricity grid, and so power had to come from extremely expensive diesel fired generators.
But Ancuabe has now been connected to the national grid, drawing its power from the Cahora Bassa dam on the Zambezi. As a result the cost of electricity for the mines has plummeted.
The tender for reopening the mines was won last year by the Swiss company Timcal, which describes itself as "the world leader in high-tech, high performance solutions based on specialized graphite and carbons".
The Deputy Minister of Mineral Resources, Abdul Razak Noormahomed, told "Noticias" that, as soon as the negotiations of the terms of the contract between Timcal and the government are completed, the company will start working towards resuming graphite production.
Timcal plans to assess the needs for the functioning of the mines, because the equipment in use before the 1999 closure is now obsolete.
The market problems encountered in the 1990s are unlikely to be repeated, since there is now growing demand for graphite from the electronics industry.