The Balama graphite mine, one of the world’s largest sources of natural graphite, remains closed due to intensified local protests amid post-election tension in Mozambique.
Operated by Australian company Syrah Resources, the mine has been inoperative for three consecutive quarters, affected by blockades on access to the site and the lack of effective intervention by the authorities. The shutdown originated from claims by resettled farmers, but spread to other areas of unrest related to the country’s political instability.
According to Syrah, although an agreement has been reached with the initial group of farmers, a small number of protesters continue to block access to the mine without presenting any legitimate demands. In March, the company obtained a court injunction ordering the site to be cleared, but the enforcement of the order by the district authorities remains uncertain.
Since operations were suspended in mid-2024, the Balama mine has not produced a single tonne of graphite. In the first quarter of 2025, Syrah recorded sales of only 1,300 tonnes of the product, a volume much lower than in previous periods.
The company declared force majeure under the Balama Mining Agreement in 2024, maintaining this status until the situation returns to normal. Meanwhile, the fixed costs of the operation stand at around three million dollars per month, even though temporary cost-cutting measures have been adopted.
In addition to the economic impact, the suspension of activity has compromised the social programmes that Syrah was developing in the region. The company reiterates, however, its commitment to sustainability practices and support for local communities.
The lack of a swift response from the Mozambican authorities, in a context of civil unrest and delays in the formation of the new government, has heightened uncertainty about the resumption of production in Balama. Syrah has not yet provided any forecast for the resumption of operations.
Source: Engineering News
