Graphite production resumes at Balama mine
Australia-based Syrah Resources has officially resumed natural graphite production at its Balama mine in northern Mozambique, following a six-month suspension triggered by social unrest and access blockades.
The restart, which began after site access was restored in early May, comes after extensive maintenance, inspection, and preparation activities. Syrah announced that it will progressively ramp up plant utilisation and production volumes as part of a targeted operating campaign designed to rebuild finished product inventory.
Target
The company aims to resume graphite shipments to ex-China markets during the September quarter, with a focus on large-volume breakbulk shipments to accelerate customer deliveries and strengthen cash inflows. The ASX-listed firm highlighted rising latent demand for natural graphite particularly outside China amid global supply chain disruptions, including those previously caused by halted Balama operations.
Despite the resumption, Syrah confirmed that the force majeure declaration issued in December 2024 remains in effect. The legal status invoked due to violent protests linked to election disputes that began in October 2024 will stay in place pending a full review of the on-ground operating environment and the resumption of steady product shipments.
The unrest, which reportedly led to around 400 deaths and significant infrastructure damage across Mozambique, had initially disrupted operations. A formal agreement reached in April 2025 between Syrah, local farmers, and government authorities helped quell the demonstrations. However, a small group continued to impede access to the mine until the final clearance was secured in May.
At the heart of the conflict were unresolved resettlement issues involving local farmers displaced during earlier phases of mine development. Syrah stated it is working closely with Mozambique’s central and provincial governments, as well as district and community leaders, to resolve lingering grievances and ensure sustained operational stability at the Balama site.
In parallel, the company is developing its Vidalia facility in the United States, which will use graphite from Mozambique to produce active anode material for electric vehicle batteries—an integral part of Syrah’s downstream value chain strategy.
According to government data, Mozambique’s total graphite production plummeted by 64% in 2024 to just 34,899 tonnes—one of the lowest outputs in recent years underscoring Balama’s strategic importance to both Syrah and the global EV supply chain. The Balama mine, considered one of the world’s largest high-grade graphite deposits, is now expected to operate in “campaign mode”, scaling up or down based on market demand and local conditions.
