en.Wedoany.com Reported - British mining company Total Graphite has temporarily suspended production in Madagascar to accelerate its graphite project in Mozambique, including the Montepuez area in Cabo Delgado province, with a first-phase annual production target of 50,000 tons.
According to an operational update, the London Stock Exchange-listed British company stated that it is currently prioritizing "completing optimization" of its production operations in Madagascar while advancing the development and industrial processing plans for the large-scale project in Mozambique.
According to the company, operations in the Vatomina area of Madagascar have been suspended to conduct additional drilling, mine planning, infrastructure improvements, and processing plant optimization. Production is expected to resume in December this year, with a monthly target exceeding 1,000 tons.
Meanwhile, the company stated that it is advancing the update of the final feasibility study for the Montepuez project in Cabo Delgado province, which is expected to have an annual capacity of "50,000 tons" in its first phase.
Total Graphite added that the analysis from the optimization plan has strengthened management's confidence that the group holds a "valuable portfolio of assets" capable of supporting a significantly larger integrated graphite business linked to the global battery market and energy transition.
According to the announcement, the company currently holds a total cash position of $3.8 million (approximately €3.3 million), including $2.3 million (approximately €2 million) in bank guarantees related to the Mozambique mining project. The company also stated that it will continue to evaluate "financing opportunities and strategic partnerships" to support the development of its assets.
The announcement comes amid a significant recovery in Mozambique's graphite production. Government data shows that the country produced 28,018 tons of graphite in the first three months of 2026, nearly double the initial annual target of 14,814 tons.
According to the government, this performance was driven by operational stability among major graphite producers and the commissioning of a new enterprise in Niassa province, achieving 189% of the period target.
This progress marks a recovery after recent fluctuations. Mozambique set a graphite production record of 165,900 tons in 2022, which fell to 97,300 tons in 2023 and 34,900 tons in 2024.
However, the country's actual production at the end of 2025 was 67,078 tons, despite no output in the first quarter of that year due to the suspension of the Balama mine in Cabo Delgado province, affected by protests following the October 2024 general elections. The Balama mine is one of the world's most important graphite mines, targeting the electric vehicle battery market, including the U.S. market.
In January this year, Mozambican President Daniel Chapo stated at the inauguration of the new graphite processing plant in Niassa that it provides opportunities for the country, enabling Mozambique to become a supplier of high-purity graphite rather than just an exporter of raw materials. The plant, invested with Chinese capital totaling approximately $200 million (about €171.5 million), has an annual production and processing capacity of up to 200,000 tons of graphite. Located in the Nipepe district, about 400 kilometers from the provincial capital Lichinga, the plant currently employs 1,090 workers and is expected to exceed 2,000 jobs when reaching maximum capacity.
