AMG Mining AG, a subsidiary of the Netherlands-based Advanced Metallurgical Group (AMG) plans to quarry for graphite in the Ancuabe district of the northern Mozambican province of Cabo Delgado under the terms of a 15-year concession, the group said in a statement.
The concession area contains a graphite quarry and a processing unit. AMG Mining plans to re-open the facility, which stopped operating in 1999 due high production costs.
Jonathan Costello, one of the group’s vice presidents, said the group expected to produce 6,000 tons of graphite per year at peak production.
Ancuabe graphite became the focus of renewed interest when two years ago the district was linked to the national power grid. This made quarrying more viable than when production was based on high cost diesel generators. (macauhub)