LARA SMITH Mozambique’s recent surge in mining activity is largely owing to the discovery of new natural resources
Underscoring Mozambique’s significant mining sector growth is President Filipe Nyuse’s affirmation, through a statement, that Mozambique’s extractive industry amassed revenue exceeding $12.3-billion between 2020 and 2024.
This revenue contribution, according to independent mining consultancy Core Consultants, evidences the growing significance to the global mining sector of Mozambique, which boasts significant resources of diverse minerals, such as coal, natural gas, heavy mineral sands, rubies, sapphires and emeralds.
Core Consultants founder and MD Lara Smith says Nyuse’s statement highlights the nation's emergence as a key player in the African mining sector with mineral-rich provinces such as Cabo Delgado, Nampula, Gaza and Tete.
Nyuse’s affirmation, echoed by Smith, reaffirms Mozambique’s status as a critical contributor to the international mining industry, poised for further expansion and development.
Smith adds that Mozambique’s recent surge in mining activity is largely owing to the discovery of new natural resources, which have attracted international investment and propelled economic development.
“Particularly noteworthy is Mozambique’s position in the graphite market. As the electric vehicle (EV) industry booms, the demand for graphite, crucial for lithium-ion batteries, has soared,” she adds, noting that Mozambique, in recognising this demand, has been actively increasing graphite production, focusing efforts in its northern regions, which are rich in this mineral.
Smith notes that, according to projections, both coarse and fine natural graphite output will increase significantly in coming years.
Further, she says Australia-listed vertically integrated natural graphite and battery anode company Syrah Resources has invested over $300-million in processing plants and infrastructure, including logistics, so that it can mine and process natural graphite from its Balama operation, in Mozambique.
“As a high-grade graphite producer [with a] 50-year life-of-mine, Syrah’s resources are expected to be a long-term fixture in Mozambique and put the country on the map as a strategic supplier of graphite resources,” says Smith.
According to Mozambique government forecasts, the country’s extractive industries are expected to grow by 18.6% this year, driven by this increased production, as well as that of other globally-significant minerals, such as tantalite, gold and coal.
In addition, Mozambique’s admission to the responsible diamond sourcing accreditation scheme – the Kimberley Process Certification Scheme – also opens up new avenues for diamond exploration and mining, further diversifying its mineral exports, adds Smith.
“Mozambique is not only focusing on expanding its mining capabilities, but also on aligning with global environmental standards,” she says, noting that the country’s government is advancing climate change policies and has been active in international discussions about low-carbon development, showcasing its commitment to sustainable mining practices.
Renewable Energy Role
In addition to its mineral riches, Smith says that Mozambique boasts significant hydropower resources, which could position the country as a regional hub for green hydrogen production.
This, she adds, aligns with the global shift towards renewable energy and provides an additional avenue for economic growth and environmental sustainability for Mozambique.
“Overall, the mining industry in Mozambique is increasingly attentive to climate-related and environmental, social and governance matters. Companies are revising their priorities to ensure long-term sustainable operations,” notes Smith.
She adds that Mozambique's participation in the Extractive Industries Transparency Initiative highlights its commitment to revenue transparency, which is crucial for attracting further foreign investment.
However, despite the country’s extensive mineral endowment, Smith stresses political concerns the country could face, such as the country’s dependence on foreign investment to develop its mining industry.
“The country can only continue to capitalise on its offshore potential if it manages to maintain political stability and reduce the threat of terrorism,” she says.
In this regard, since 2017, Al Shabaab – a jihadist guerilla force and local affiliate of Islamic State – has been responsible for terror attacks and disruptive insurgent activity in the north of Mozambique, displacing hundreds of thousands of people from their homes.
In addition to the grave humanitarian consequences, Smith laments that the terror network managed to paralyse the country’s administrative network, halting natural gas field projects offshore in the Cabo Delgado province, affecting two multinational companies operating there, namely TotalEnergies and ExxonMobil.
Syrah Resources also suspended logistics operations at its mine in 2022 following terorrist attacks in the region.
Moreover, in 2024, Smith notes, terrorism and illegal trafficking of precious metals remain on the rise with ISIS’ Mozambique branch attracting foreign fighters throughout the region, including jihadists from Tanzania, Rwanda and South Africa.
“So far, these incursions remain localised in the northern part of the country, in Cabo Delgado, but it has nonetheless led to over 540 000 displaced persons, more than half of them children, according to the Save the Children Foundation,” she stresses.
Despite its challenges, Smith is confident that Mozambique is on a path to significantly increase its production of key minerals, considering that the country predicts a record production of tantalite and gold this year, marking a continued trend of growth that supports its economic development objectives.
Mozambique is also poised to become a key player in the shift towards a global green economy, given its potential contributions to the EV market and renewable energy sectors, she adds.
The integration of its mining sector with these broader economic and environmental goals suggests a promising future for Mozambique as a noteworthy mining destination in Africa,
” she concludes.