Australian mining company Syrah Resources announced on Tuesday 7 January that it has obtained a waiver of events of default related to its 150 million dollar loan from the US Development Finance Corporation (DFC).
According to Reuters, the move gives the company relief from operational disruptions at its graphite mine in Balama, Cabo Delgado, northern Mozambique, caused by the ongoing protests in the country.
The mining company suspended operations at its main graphite mine in December, after months of interruptions caused by demonstrations led by farmers since September 2024. Despite the closure, Syrah has not failed to fulfil its payment obligations related to the loan.
In November 2024, the Melbourne (Australia)-based company received an instalment of 53 million dollars, which is being used as working capital for the Balama operation. However, the remaining balance of the loan is still inaccessible.
‘Disbursements of other DFC loans are not available while Balama operations are blocked by the protest actions,’ the company said in a statement, adding that “operating conditions in Mozambique are challenging, with the national demonstrations associated with the general elections causing widespread disruption in the country”.
Syrah also emphasised that it was actively collaborating with the DFC and the US Department of Energy to resolve the operational difficulties.
Even in the context of the crisis, the company’s shares rose 2.3 per cent, trading at 0.22 dollars.
