Australian miner Syrah Resources expects to receive US funding of 150 million dollars for its subsidiary Twigg Exploration & Mining, which operates Mozambique’s Balama graphite mine in Cabo Delgado.
According to information released to the markets this Monday, 11 September, Syrah explains that the conclusion of the 13-year financing operation – through the DFC, the financing and development agency of the Government of the United States of America (USA) – will make it possible to fund the capital requirements of local graphite operations, one of the world’s largest reserves of this raw material, used in electric car batteries.
The operation will also enable “feasibility studies for the development of Balama’s vanadium resource” and the “current and future expansion of the storage facility”, as well as “sustaining Balama’s operations”.
“DFC’s proposed loan for Balama is in line with its commitment to promote trade and investment agreements and partnerships between the US and Africa,” explains Syrah Resources.
This financing also aims to guarantee the implementation of supply chains in Mozambique, more specifically, “to finance investments in the company’s graphite mining and processing operation in Balama”.
“Pending Congressional notification, this investment will increase production and diversify the global supply chain for graphite, which is a critical mineral for a range of clean energy and advanced technology products. DFC’s support will also lead to job creation and investment in local infrastructure, while ensuring high environmental and social standards that are essential for responsible mining,” reads the US government statement.
In the note, it is recalled that at the recent 2023 G20 Summit in New Delhi, India, US President Joe Biden and Indian Prime Minister Narendra Modi brought together a group of leaders to “accelerate investments to scale high-quality infrastructure projects and the development of economic corridors through the Global Infrastructure and Investment Partnership (GIIP)”.
The White House assumes that the US “will continue to leverage public capital to mobilise private sector investment and collaborate with partners to develop agile and flexible relationships”.
“Around the world, from Asia to Africa to the Western Hemisphere, GGGI will continue to build and strengthen coalitions of partners – governments, the private sector, and multilateral development banks – to develop key economic corridors and drive high-quality investment,” it said.
On 18 July, Syrah announced that in April it had produced 15,000 tonnes of graphite for electric car batteries, which it exports from Cabo Delgado, in northern Mozambique, having stopped production the following month due to international stocks.
The Australian mining company’s production in Cabo Delgado had risen to 41,000 tonnes of natural graphite in the first quarter of this year, compared to 35,000 tonnes in the previous quarter, above sales, which rose from 28,000 to 30,000 tonnes.
Syrah was one of the mining companies whose operations were affected by the armed conflict in Cabo Delgado.
The Australian firm is also building its own Vidalia battery material factory in the US, which will be supplied with Mozambican ore, in this case with two tonnes shipped in April.
