Graphite mining company Syrah announced today, October 27, to the Australian Stock Exchange that it has fully resumed operations in Cabo Delgado, northern Mozambique, following labour conflicts at the mine.
“Mining, processing and logistics operations have resumed at Balama without restrictions,” after understanding “with employees and subcontractors,” reads the statement sent by Syrah Resources.
The mining company also said that operations and the renewal of the company agreement “are being carried out with the support of the competent authorities of the Mozambican government” and in dialogue “with the designated representatives of its unionized workforce.”
The Balama mine, which exports ore for making electric car batteries, came to a halt in September in a strike that the company classified as “illegal,” accusing a group of workers of having jeopardized the safety of the space.
The exploitation of graphite for export is one of the activities in which the Mozambican government expects great growth by 2023.
“The Australian company’s operations have suffered a troubled year, reflecting the instability in the north of the country”
The State Budget for 2023 foresees “a growth in production in the order of 48% to 270 thousand tons” and Syrah Resources is one of the main operators.
The Balama mine produced about 38,000 tons of graphite in the third quarter of 2022, and most of the material was exported through the port of Nacala, in Nampula province.
For the same period, the company had already announced sales of 55,000 tons.
The Australian company’s operations have suffered a troubled year, reflecting the instability in the north of the country.
In June, the logistics chain had already been temporarily suspended due to attacks by rebels who have been tormenting Cabo Delgado for five years and who approached the road where the graphite is sold.
The Balama mine began commercial production four years ago and was highlighted in December when Syrah Resources announced an agreement with the multinational electric vehicle company Tesla, which intends to use graphite from the mine, described as one of the largest “quality” deposits in the world by the Australian company itself.