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Syrah Resources Interrupts Graphite Exploration in Mozambique

Syrah Resources Interrupts Graphite Exploration in Mozambique

Australia’s Syrah Resources, which explores graphite in Cabo Delgado, announced today the suspension of operations due to an “illegal strike” organised by a small group of employees and local workers.
In a statement sent to the Sydney stock exchange and cited by Lusa, Syrah Resources said it had decided, “as a precaution for the safety of employees,” to suspend operations and withdraw staff from the Balama mine on 20 September.

The Australian company stressed that it was working with representatives of unions and the Mozambican government to start negotiations with the strikers, who it said had “prevented access to the site,” of the mine.

Syrah Resources also said it was preparing, “after an assessment of the safety situation,” to return employees and restart operations at Balama “as soon as possible.

In a statement the company said that the mine had so far produced 38 tons of graphite in the third quarter of this year, and that most of the material had already been transported to Nacala, in Nampula province.

Syrah Resources said it had already sold 54 tonnes of graphite from Balama in the third quarter and guaranteed that it will ship five tonnes of graphite from Nacala this month, without any impact from the strike.

The Australian company had in June resumed logistics operations on National Road Number One (EN1), after suspending the movement of personnel across the highway due to rebel attacks in Ancuabe.

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The attacks began on 05 June and are the first reports of insurgency-related violence in Ancuabe district, 100 kilometres from Pemba, an area that until now was considered safe and used to shelter displaced people.

It should be noted that the Balama mine started commercial production four years ago, and was highlighted in December, when Syrah announced an agreement with electric vehicle multinational Tesla, which intends to use graphite from the mine, which is described as one of the largest deposits of “quality” graphite in the world by the Australian company itself.

MZNEWS

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