31 December 2008
Maputo — The Swiss company Timcal Graphite & Carbon has been awarded the contract for the exploitation of Ancuabe graphite mines, in the northern province of Cabo Delgado.
According to a press release received by AIM on Tuesday, this follows an international tender launched by the Mozambican government in May 2008.
To that end the Mozambican Ministry of Mineral Resources (MIREM) and TIMCAL Ltd, a company of the group IMERYS, signed a memorandum of understanding.
The mines had been closed in 1999 due to high production costs incurred by the use of diesel generators for electricity generation.
According to MIREM, both parties agreed to fast track the negotiation of the contract for the exploration, research, development and extraction of graphite deposits in Ancuabe, which must be completed by March 2009.
These are the first steps towards reopening Ancuabe mines, which could increase the contribution of the mining sector for the Mozambican economy, and employment opportunities for hundreds or even thousands of residents in Cabo Delgado.
According to the Mozambican authorities, currently there is a favourable environment to reopen the graphite mines due to increase demand in the international market, mainly arising by the development of the electronics industry.
Another "good news", especially for TIMCAL Ltd, is the fact that by the end of this year Ancuabe will be supplied with electricity from the Cahora Bassa dam, thus dramatically reducing the cost of power.
Other requirements for a profitable operation of Ancuabe mines include low production costs and transport network to reach international markets.
Feasibility studies have shown that there could be in the region over one million tonnes of graphite deposits.
From 1994 to 1999, the Ancuabe graphite mines were exploited by a consortium, Grafites de Ancuabe SARL (GDAS) following a five million dollars investment.
At the time, the processing capacity was 7,500 tonnes of graphite per year, open cast mining, with a recovery rate reaching 70 percent and occasionally 80 percent.
TIMCAL, however, will decide whether to use the existing processing plant and equipment.
Once reopened, the mine will produce graphite for export markets in Europe, America and China which, despite being the largest producer in the world is also the largest consumer.
Graphite is widely used for the production of pencils, lubricants, electronic products, crucibles, among other industrial applications.
Founded in 1908, TIMCAL Graphite and Carbon is a world leader in providing solutions related to carbon. This firm has factories and offices in Switzerland, Canada, USA, Japan, China, Germany, France, Belgium and Britain.
Be the first to Write a Comment!
Copyright © 2008 Agencia de Informacao de Mocambique. All rights reserved. Distributed by AllAfrica Global Media (allAfrica.com). To contact the copyright holder directly for corrections — or for permission to republish or make other authorized use of this material, click here.
AllAfrica aggregates and indexes content from over 125 African news organizations, plus more than 200 other sources, who are responsible for their own reporting and views. Articles and commentaries that identify allAfrica.com as the publisher are produced or commissioned by AllAfrica.
