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Syrah Resources Secures $64.73M Financing for Graphite Mine in Mozambique

Syrah Resources Secures $64.73M Financing for Graphite Mine in Mozambique

Australian mining company Syrah Resources announced that it has secured financing totalling 64.73 million dollars to boost operations at the graphite mine located in Balama, Cabo Delgado province, in northern Mozambique.

In information released on Wednesday (13), the company said that the operation consists of placing a rights offer to also finance the Vidalia project, based in the United States of America (USA), explaining that the largest shareholder and main Australian pension fund, AustralianSuper, has agreed to convert bonds issued in June 2019 and December 2023 into new shares in the mining company.

In September last year, Syrah revealed that it plans to receive US funding of 150 million dollars for its subsidiary Twigg Exploration & Mining, which operates the Balama graphite mine.

In a statement to the markets, the organisation explained that the conclusion of the 13-year financing operation – through the DFC, the US government’s financing and development agency – 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”.

“The loan proposed by DFC is in line with the 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.

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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)”.


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