Graphite mining and processing company Total Graphite has announced that it has temporarily suspended operations at its Vatomina mine, in Madagascar.

The company will now prioritise the completion of its optimisation work at the mine and focus its efforts on advancing the development of large-scale mining projects in Mozambique and downstream processing plans.

Total Graphite highlights that an independent technical review at Vatomina has identified that operational and geological improvements could be made, especially towards drilling, mine planning, infrastructure upgrades and plant optimisation, with the company targeting a production restart of more than 1 000 t a month from December, subject to drilling progress.

Further, Total Graphite has also referred to mining consultancy SRK Consulting’s Competent Person's Report, completed for the company in March, which estimated an exploration target of 18-million to 20-million tonnes at Vatomina with a 4% graphitic content, to complement the existing resource base.

Meanwhile, the company has also noted that, across its mining operations, it has an unrestricted cash balance of $1.5-million as at July 16, with total cash of $3.8-million, including a $2.3-million bank guarantee supporting its Mozambique mining projects.

Moreover, Total Graphite highlights that work on the definitive feasibility study (DFS) for its Montepuez project, in Mozambique, is progressing for a planned first-phase operation with a production capacity of 50 000 t/y.

“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.

“While 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,” Total Graphite chairperson Christian Dennis comments.

The Total Graphite 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.

The company also notes that its optimisation programme has supported positive engagement with financial institutions and prospective strategic partners focused on critical minerals, including offtake-linked trade financing, as it continues to evaluate funding and partnership opportunities across its portfolio.