ASX-listed Syrah Resources has recommenced production at its Balama graphite operation in the southern Cabo Delgado Province of Mozambique.
Syrah declared a force majeure event at Balama in December 2024 due to protests against the Mozambique election.
In April, a formal agreement between Syrah, the Mozambique Government and local farmers was reached, with site access restored in early May. Syrah’s maintenance and inspection teams were remobilised to Balama shortly thereafter.
With remobilisation, inspection, maintenance and preparatory activities now complete, Syrah has resumed production at Balama.
“Syrah will progressively increase plant utilisation and production volumes in an operating campaign to restock finished product inventory in preparation for high volume shipments,” Syrah said.
In October 2024, China announced new export restrictions on certain graphite products, resulting in other countries looking to build a graphite supply chain.
Syrah said subject to market demand, it expects to continue operating Balama in campaign mode.
“There is significant and growing latent demand for Syrah’s natural graphite products, particularly in the ex-China market, due to global supply disruptions, including those from Balama,” Syrah said.
“To accelerate product deliveries to customers and bring forward cash receipts, the company is planning to initially complete large volume breakbulk shipments to ex-China destinations in the September 2025 quarter, as soon as product inventory is available.”
Considered a “globally significant natural graphite resource”, Balama has a 50-year mine life and a two-million-tonne-per-annum ore throughput yielding approximately 350,000 tonnes of graphite per annum.
Used as an input for anodes, Syrah hopes its graphite production will positively contribute to the battery anode and electric vehicle markets.
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