Australian mining company Mustang has announced the discovery of new graphite and vanadium deposits in its prospecting area in the northern Mozambican province of Cabo Delgado.

Drilling in the southern extension shows a potential of additional dimensions in the Caula project in Montepuez, establishing it as a world-class project, the company said in a statement.

Mustang has a ruby ​​mine in the same region from which it now plans to extract graphite and it sits next to a mine operated by Syrah, another Australian company that has already begun packaging and exporting graphite.

The demand for graphite is on the rise worldwide as it is a component used in batteries, at a time when the market for electric cars and other electrical products – such as drones – is expanding.

Vanadium is a metal whose demand Mustang expects will grow, given its increasing use in steel production and other alloys used in construction and also in batteries. (macauhub)