Syrah Resources, an Australian graphite mining company operating the Balama mine in Cabo Delgado province, northern Mozambique, announced on Tuesday, 28 October, that 26,000 tons of graphite were produced in the third quarter, following six months of suspension due to social unrest.
According to information reported by Lusa, of the total production, 24,000 tons of graphite were sold and shipped to customers at an average price of $625 (39,500 meticais) per ton, supplying the electric vehicle battery market in the United States and Indonesia.
“With the return of normal operations at Balama and logistics support for product transport and shipment loading, the company’s Mozambican subsidiary, Twigg Exploration and Mining, notified the government that the ‘force majeure’ declaration in the Mining Contract has been removed,” the company stated.
Cited in the report, Syrah CEO Shaun Verner noted that “key operational highlights in the third quarter included the safe resumption of operations at Balama after a long inactive period and the completion of large bulk shipments to Indonesia and the United States, in addition to new container shipments.”
“We expect to maintain production and shipment rates in the final quarter of 2025. Successful capital raising has put the company in a better position to manage market volatility,” he added.
In December last year, the company declared “force majeure” and suspended operations at the Balama graphite mine due to political and social crises. The move caused a 28% drop in the company’s share value and coincided with default on loans financed by the U.S. government.
Previously, Syrah received total financing of 15.9 billion meticais ($248 million) from the International Development Finance Corp. and the U.S. Department of Energy to support the Balama mine and build a processing plant in the United States.
At the time, Syrah, a supplier of graphite for electric vehicle batteries, including a contract with Tesla, reported that the disruptions prevented material transport and forced a temporary shutdown, with workers laid off.
Despite the challenges, shipments resumed in July, reflecting efforts to overcome security and stability issues in Cabo Delgado, a strategic region for the global battery industry.
Source: Diário Económico
