Syrah Resources is targeting the resumption of natural graphite production at its Balama operation in Mozambique before the end of the June 2025 quarter, with shipments expected shortly after. Maintenance and inspection teams have returned to the site following the restoration of access in early May 2025. Contractors for camp services, mining, equipment, and power are also on-site, preparing for the restart. Syrah is collaborating with Mozambique’s government, provincial authorities, and community leaders to settle issues stemming from the operational disruption and ensure the smooth flow of goods and personnel, as stipulated in the Balama Mining Agreement.
Despite these positive steps, Syrah’s declaration of force majeure remains in effect, pending the resumption of production and shipments. Certain historical events of default linked to loans from the United States International Development Finance Corporation (DFC) and the United States Department of Energy (DOE), triggered by past protests and interruptions, require waivers or resolution to the satisfaction of DFC and DOE. Discussions are ongoing. DFC has deferred the first half-yearly interest payment under its loan. Inspections have revealed no significant issues with the Balama plant, mine pit, or infrastructure. The company plans a sequential restart of plant sections, prioritizing power restoration and site security. Mining activities are not immediately critical for production resumption. Syrah emphasizes strong customer demand for its natural graphite products due to supply disruptions and plans to prioritize breakbulk shipments to expedite deliveries.
