Syrah Resources secures waiver for Balama graphite mine
Australia-based Syrah Resources has secured a waiver for default events on its $150 million loan from the US International Development Finance Corporation (DFC), providing critical relief amidst ongoing disruptions at its Balama graphite operation in Mozambique.
Balama mine
The Balama mine is one of the largest graphite mines in Mozambique and in the world. The mine is located in the northern part of the country in Cabo Delgado Province. The mine has estimated reserves of 1.15 billion tonnes of ore 10.2% graphite.
The suspension of activities, which began in December 2024 due to nationwide protests linked to Mozambique’s general elections, has impeded the company’s flagship operation. The farmer-led protests, disrupted operations and transportation across Mozambique, including the Balama site. Despite these challenges, Syrah has maintained all its loan payment obligations.
A $53 million tranche disbursed in November 2024 is allocated for Balama’s working capital. However, further disbursements under the DFC loan are blocked due to the operational suspension. Syrah is actively working with the DFC and the US Department of Energy to manage the implications of the protests and navigate the challenges in Mozambique.
Despite operational setbacks, Syrah’s share price rose 2.3% to A$0.22 in early trading, reflecting some investor confidence in the company’s ability to weather the current disruptions. Its collaboration with key stakeholders and the support from the DFC may provide the necessary framework to stabilize operations once the protests subside. The Balama operation, with its robust resource base and strategic importance in the global graphite supply chain, remains a key asset for Syrah’s long-term growth.
