DH Mining Development Co. Lda of China will begin next year mining and processing graphite in Nipepe, in the northern Mozambican province of Niassa, Rádio Moçambique reports.

The Mozambican state-run broadcaster quotes a provincial official, Silvino Bonomar, as saying DH Mining is investing US$30 million in the mine.

Mr Bonomar said DH Mining was in the final stages of installing the mining equipment, and of building the graphite warehouse and processing facility.

A bridge connecting Nipepe to the adjoining province of Nampula is being planned, the report quotes Mr Bonomar as saying.

The DH Mining concession in Nipepe is estimated to contain over 5 million tonnes of graphite, Rádio Moçambique says.