• INSIGHT
GRAPHITE
PRODUCTION EXPECTED TO
GROW
According to data and analytics company GlobalData , worldwide natural graphite production is expected to grow by 7.6 % in 2021 .
After increasing in 2018 and 2019 , global natural
graphite production has been adversely affected by Covid-19 in 2020 , with mines being placed either under care and maintenance or temporary suspension due to lockdowns and restrictions . While output has declined by 15.4 % to 952.6 thousand tonnes ( kt ) in 2020 , it is expected that natural graphite production will increase by 7.6 % in 2021 to 1025.5kt and grow to 1206.6kt by 2024 .
China is the world ’ s largest producer , with expected output of 665kt of natural graphite . This represents a decline of 5 % versus 2019 due to Covid-19 restrictions , mainly during the first quarter of 2020 when several mines and plants had to temporarily cease production activities .
Vinneth Bajaj , senior mining analyst at GloblaData says that while it was the second-largest producer in 2019 , Mozambique ’ s graphite output is expected to fall from 100kt to 20kt , placing the country sixth overall out of world production . “ The reduction is due to the Balama Graphite project , operated by Australia ’ s Syrah Resources , being suspended due to restrictions and lower Electric Vehicle ( EV ) demand , with no production at all since April 2020 . The project is well positioned to commence operations once the market conditions improve ,” says Bajaj .
Similarly , production from Brazil is expected to decline by 4.1 % due to lockdowns and restrictions , which became prevalent during the second and third quarters of 2020 . “ Natural graphite production is expected to reach 1206.6kt by 2024 . This will be supported by growing demand from the EV battery segment , where graphite is a key component . As well as the restart of the Balama Graphite project , projects most likely to commence operations during the forecast period include Madagascar ’ s Molo graphite project ( 2021 ), Mozambique ’ s Montepuez and Tanzania ’ s Lindi Jumbo ( 2022 ).
“ These projects , together with the development of Syrah Resources ’ Vidalia Battery Anode Material Project , which will make it the first vertically-integrated producer of natural graphite active anode material outside China , will assist in reducing China ’ s dominance in the sector and providing alternative sources for battery makers across the globe .” •
40 • African
Mining • February 2021 www . africanmining . co . za