Syrah Resources (ASX:SYR) is targeting Balama natural graphite production resumption before the end of the June 2025 quarter, with product shipments expected to follow several weeks later.
The company has remobilised maintenance and inspection teams to its Balama Graphite Operation in Mozambique following site access being restored in early May 2025.
The company’s camp services, mining services, mobile equipment, and power services contractors have also returned to Balama to complete inspections and prepare for restart of operations.
Syrah is continuing to work with the Mozambique National Government, and Cabo Delgado provincial authorities and district and community leaders to progress settlement processes arising from the disruption, and ensure ongoing support for the operation and free movement of goods and people to and from the Balama site, as required under the Balama Mining Agreement.
Syrah’s declaration of a force majeure event under the terms of the Balama Mining Agreement remains in force, pending the resumption of production and shipments and further review of the operating environment.
Certain historical events of default related to Syrah’s loans with the United States International Development Finance Corporation (DFC) and United States Department of Energy (DOE) that were triggered by Balama protests, interruption to Balama operations, and other related matters still need to be waived or otherwise addressed to the satisfaction of DFC and DOE, and are subject to ongoing discussions.
DFC has agreed to defer the payment of the first half yearly interest payment under the DFC loan, which was due in mid-May 2025.
Meanwhile, inspections to date have not identified any significant issues with the Balama plant or equipment, Ativa mine pit, tailings storage facility or associated infrastructure.
Inspection and preparation of the crushing and milling, flotation, filtration and drying, and product screening and bagging areas of Balama plant will be undertaken in sequence over several weeks.
Minor maintenance is required prior to and throughout the sequential restart of each section of the plant due to the duration of the outage.
Syrah says it is progressing restart planning and plant preparation, initially prioritising power restoration, camp preparation and site security.
The company adds that Balama mining activities are not critical for Balama production resumption, and mining operations will restart in due course.
“There is significant, and increasing, latent demand from customers for Syrah’s natural graphite products due to supply disruptions, including from Balama, in the ex-China natural graphite market. Syrah’s finished product inventory is fully depleted,” the company reports.
“The company will prioritise breakbulk shipments to shorten delivery times for its customers and bring forward cash receipts. Subject to market demand, Syrah expects to continue to operate in campaign mode.”
Write to Adam Orlando at Mining.com.au
Images: Syrah
