Graphite is mined around the world by both open pit and underground methods. While flake graphite and amorphous graphite are both mined open pit and underground, lump (vein) graphite is only mined underground in Sri Lanka. The open pit mines usually employ equipment (i.e. bulldozers) to scoop up the ore, which is usually put in trucks and moved to the plant. Since the original rock is usually lateritized or weathered, this amounts to moving dirt with flecks or pieces of graphite in it from the pit (blasting is seldom required). The underground graphite mines employ drilling and blasting to break up the hard rock (ore), which is then moved by mine cars pulled by a locomotive, or moved by automotive vehicles, to the surface and then to the plant. In less-developed areas of the world, the ore can be mined by pick and shovel and transported by mine cars pushed by a laborer or by women carrying baskets of ore on their heads.

Graphite usually needs beneficiation, although thick-bedded amorphous graphite and vein graphite is almost always beneficiated, if beneficiated at all, by laborers hand-picking out the pieces of gangue (rock) and hand-screening the product. The great majority of world flake graphite production is crushed and ground if necessary and beneficiated by flotation. Treating graphite by flotation encounters one big difficulty: graphite is very soft and "marks" (coats) the particles of gangue. This makes the "marked" gangue particles float off with the graphite to yield a very impure concentrate. There are two ways of obtaining a saleable concentrate or product: regrinding and floating it again and again (up to seven times) to obtain a purer and purer concentrate, or by leaching (dissolving) the gangue with hydrofluoric acid (for a silicate gangue) or hydrochloric acid (for a carbonate gangue).

In the milling process, the incoming graphite products and concentrates can be ground before being classified (sized or screened), with the coarser flake size fractions (below 8 mesh, 8–20 mesh, 20–50 mesh) carefully preserved, and then the carbon contents are determined. Then some standard blends can be prepared from the different fractions, each with a certain flake size distribution and carbon content. Custom blends can also be made for individual customers who want a certain flake size distribution and carbon content. If flake size is unimportant, the concentrate can be ground more freely. Typical final products include a fine powder for use as slurry in oil drilling; in zirconium silicate, sodium silicate and isopropyl alcohol coatings for foundry molds; and a carbon raiser in the steel industry (Synthetic graphite powder and powdered petroleum coke can also be used as carbon raiser). Rough graphite is typically classified, ground, and packaged at a graphite mill; often the more complex formulations are also mixed and packaged at the mill facility. Environmental impacts from graphite mills consist of air pollution including fine particulate exposure of workers and also soil contamination from powder spillages leading to heavy metals contaminations of soil. Dust masks are normally worn by workers during the production process to avoid worker exposure to the fine airborne graphite and zircon silicate.