# Total Graphite advances Madagascar optimisation and Mozambique development

- Link: https://www.directorstalkinterviews.com/total-graphite-advances-madagascar-optimisation-and-mozambique-development/4121256583
- Published: 2026-07-17T07:15:01+01:00
- Author: Ethan Davis

**Total Graphite plc** ([LON:TGR](https://www.directorstalkinterviews.com/company/tirupati-graphite-plc/tgr.l)),
the specialist graphite company developing an integrated mine-to-materials supply
chain for the global energy transition, has provided an update on operations in 
Madagascar and Mozambique following the Board’s graphite Strategic Portfolio Optimisation
Programme of the Group’s operations and development priorities initiated in June
2026.

The Board’s review of the Optimisation Programme’s findings to date has reinforced
its belief that the Group possesses a portfolio of valuable graphite assets capable
of supporting a significantly larger integrated graphite business. Accordingly, 
the Company is  prioritising the completion the optimisation of its producing Vatomina
operation’s optimisation work, while simultaneously advancing the development of
its large-scale Mozambique projects and its downstream processing plans.

## Highlights:

•     US$1.5m unrestricted cash at hand position as of 16th July. Total cash position
US$3.8m with US$2.3m bank guarantee against the Mozambique mining projects. 

•     Optimisation Programme has resulted in positive engagement with financial 
institutions and prospective strategic partners focused on critical minerals, including
offtake-linked trade financing.

•     An independent technical review at Vatomina has identified a number of operational
and geological workstreams, including drilling, mine planning, infrastructure upgrades
and final plant optimisation work, designed to improve operational performance; 
production has been temporarily paused while these are completed.

•     Production restart above 1,000 MTs per month targeted from December 2026, 
subject to drilling progress.

•     Montepuez DFS update advancing for a planned first-phase 50,000 tonne per 
annum operation.

•     The Company continues to evaluate a number of funding and strategic partnership
opportunities while progressing Vatomina optimisation activities and advancing development
across its portfolio. 

## Operational Strategy

The Board has concluded that obtaining additional geological information through
a targeted drilling programme at Vatomina and updating the mine plan together with
updating the Montepuez DFS represent the most effective use of capital at this stage
of the Company’s development.  Production has therefore been temporarily suspended
while these activities are completed, with the objective of reducing operational
risk and establishing a more robust foundation for future operations

Since launching the Optimisation Programme, the Board has engaged with strategic
industry participants, financial institutions and mining companies regarding opportunities
across the Company’s East African graphite portfolio. These discussions are ongoing
and have reinforced the Board’s belief that Vatomina remains a strategically important
asset while highlighting the long-term value potential of the Company’s Mozambique
portfolio. The Company has opened data rooms to interested parties under confidentiality
agreements and received a number of non-binding proposals.

The Board believes successful completion of the Optimisation Programme is an important
milestone not only for Vatomina but also for unlocking the wider value of the Group’s
graphite portfolio and supporting its ambition to become an integrated supplier 
of graphite products.

## Madagascar Optimisation Programme

Following several months of operating experience and after an independent technical
review, the Board concluded that additional geological information is required to
refine mine planning and optimise future production. Accordingly, production has
been temporarily paused while drilling, technical studies and optimisation activities
are undertaken.

The drilling programme at Vatomina is already underway to increase the confidence
level of the current resources and expand the resource base,  with five diamond 
drill holes completed to date. The programme is designed to support an updated mine
plan and optimise future mining operations. Assay results from our on-site lab will
be published at intervals in due course, and the Company anticipates announcing 
drilling results on a regular basis going forward. The drill programme is expected
to complete during Q4 2026 and an ongoing drill programme will be in place going
forward to continue to grow the resource at Vatomina and then later at Sahamamy.
SRK in its Competent Person’s Report  completed for the Company  in March 2026 estimated
an exploration target of 18-20Mt at Vatomina with a 4% graphitic content, to complement
the existing resource base (6Mt at 3.8% graphitic content).

The Board believes investing time and capital in completing these improvements will
create substantially greater long-term shareholder value than continuing production
before optimisation is complete.

## Mozambique Development

Work has commenced to update the Definitive Feasibility Study (“DFS”) for the planned
first phase development of the Montepuez Project. With planned production capacity
of approximately 50,000 tonnes per annum, Montepuez represents a major long-term
growth project for the Company and a key component of its strategy to become a significant
international supplier of natural flake graphite.  A site visit to the Montepuez
project took place as part of the Group audit in June 2026.

Updating the Montepuez DFS is the joint top priority for the Board.

> **Christian Dennis, Total Graphite Chairman, commented:**
> _“The Board has taken the decision to temporarily pause production at Vatomina
> because we believe completing this optimisation programme now will create significantly
> greater long-term shareholder value than simply continuing to operate before identified
> improvements are implemented._
> _The operational restart has provided invaluable practical experience and significantly
> improved our understanding of the geology, mining methods and operational requirements
> at Vatomina. This has enabled the Board to identify the work required to optimise
> the operation before resuming production. _
> _Importantly, our strategic review has resulted in constructive engagement with
> industry participants, financial institutions and prospective strategic partners.
> This reinforces our belief that Total Graphite possesses a portfolio of graphite
> assets capable of supporting a much broader integrated business over time._
> _Whilst completing the optimisation of Vatomina remains our immediate operational
> priority, our ambition extends well beyond Madagascar. The development of our 
> large-scale Mozambique projects, together with our downstream processing strategy
> and potential strategic partnerships, has the potential to support the Company’s
> long-term strategy of becoming a larger and more diversified graphite business._
> _We recognise that our shareholders have shown considerable patience over recent
> years. The Board believes these decisions are expected to strengthen the Company’s
> operational foundations and position the business for sustainable long-term growth.”_

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