Mozambique: Chinese Firm Acquires 70 Percent of Triton's Graphite Assets

Maputo — A subsidiary of China's Shandong Xinsheng Minerals (formerly Shandong Yulong Gold) has acquired a 70 percent stake in the graphite assets of Australian mining company Triton Minerals for 17-million-Australian-dollar (about 11 million US dollars at the current exchange rate).

Triton Minerals held rights to graphite deposits in the northern Mozambican province of Cabo Delgado. In 2023, the company had been granted a 25-year mining concession for the Cobra Plains graphite deposit by the country's Ministry of Energy and Natural Resources.

The deal covers the Ancuabe project and the Cobra Plains concession, securing Chinese control over key reserves previously held by the Australian exploration firm.

The acquisition follows the January inauguration of a 150-to-200-million US dollar graphite mine and processing plant in Nipepe, northern Niassa province, built by DH Mining, part of China's Jinan Yuxiao group, with an annual planned capacity of 200,000 tonnes.

Together, these operations solidify Chinese control over an extensive portfolio of undeveloped graphite deposits and major processing infrastructure in northern Mozambique.

China currently mines three-quarters of the world's natural graphite and controls roughly 90 percent of its battery-grade processing. While Western governments seek alternative supply chains for electric vehicle battery anodes, low market prices have made project financing difficult for small Western exploration firms, allowing well-capitalized Chinese industrial groups to buy distressed assets.

Mozambique retains significant non-Chinese graphite interests, notably Australia's Syrah Resources, which operates the large-scale Balama mine alongside unexploited deposits held by the UK's Total Graphite in Montepuez and Balama Central, and a suspended German-owned AMG facility in Ancuabe.

However, analysts warn that the sector risks replicating the model of Tete province's coal industry, where foreign conglomerates extract raw resources for domestic manufacturing abroad, leaving host nations with lower-value supply chain activities.

In June, Mozambican President Daniel Chapo signed a revised mining law granting the state a free 15 percent stake in new projects and banning the export of unprocessed minerals. Despite these regulatory controls, the current local processing operations produce basic graphite, leaving higher-value refining steps such as purification, coating, and anode manufacturing overseas.

Read the original article on AIM.