London-listed Total Graphite is reassessing development of its Montepuez graphite project in Mozambique through a modular strategy designed to reduce the initial capital requirement and support a potential return to construction from 2027.
The company has appointed Lycopodium to update the project’s feasibility work under a staged development model. The initial module is planned at approximately 50,000 tonnes of graphite production per year, based on historical pre-production capital of about €36 million. A second module would require approximately €23 million of additional capital and could raise annual production toward 100,000 tonnes.
Modular development targets lower initial capital
The revised development structure is intended to reduce the amount of financing required at the initial stage and lower execution exposure compared with developing the project’s full permitted capacity from the beginning. Montepuez has an estimated resource of approximately 110.5 million tonnes grading 8.2% total graphitic carbon. The project is already permitted for annual production of up to 100,000 tonnes, giving the planned modular approach an existing permitted production framework.
Montepuez positioned within graphite supply chain
The scale and permitting status of Montepuez are relevant as European and other Western markets seek alternatives to Chinese graphite production and processing. Graphite remains a difficult critical-minerals supply chain for Europe to diversify, with China continuing to dominate both upstream graphite production and downstream spherical graphite processing for lithium-ion battery anodes. Under the revised plan, Montepuez could become an upstream graphite source if Total Graphite secures the financing, construction partnerships and downstream customers required for development.
Financing and feasibility work remain outstanding
The latest feasibility review does not include new EU or European Investment Bank financing, committed project debt or binding European offtake agreements. The project therefore remains a permitted development undergoing work to establish a financeable development structure rather than a fully financed mine. The next stages include updated feasibility economics, confirmation of the modular capital requirements and progress toward securing commitments from European or other Western buyers for future graphite production.
