Australia-based Syrah Resources has secured a waiver for default events under its US International Development Finance Corporation (DFC) loan of $150m (A$238.66m).
This relief comes in response to operational disruptions at its Balama graphite operation in Mozambique, which has been affected by ongoing nationwide protests, according to a report by Reuters.
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The company suspended operations at its flagship Balama Graphite mine in December 2024 due to these disruptions, which began with farmer-led protests in September 2024.
Despite the suspension of operations, Syrah has not defaulted on any loan payment obligations.
The Melbourne-based miner received a $53m tranche in November 2024, which is now allocated for Balama’s working capital, said the report.
However, Syrah said in a statement that while the remaining balance is committed, “further DFC loan disbursements are not available while Balama operations are blocked by the protest actions”.
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By GlobalDataThe company stated: “Operating conditions in Mozambique are challenging with ongoing nationwide protests associated with general elections causing widespread disruptions throughout the country.”
Syrah is actively collaborating with the DFC and the US Department of Energy regarding these default events as the protests continue to hinder operations across Mozambique.
In early trading, shares of Syrah Resources increased by 2.3% to A$0.22.
The Balama operation is located in the Southern Cabo Delgado province of Mozambique and boasts a reserve of 110mt of graphite ore at 16% TGC.
The total graphite mineral resource is estimated at 1,036mt (12% TGC), with a projected life of mine of 50 years.
The mining process at Balama involves simple, low strip, open-pit mining techniques, while the processing includes conventional crushing, grinding, flotation, filtration, drying, screening and bagging.
The processing plant has an ore throughput capacity of two million tonnes per annum (tpa), yielding approximately 350,000tpa of graphite concentrate, which contains 94–98% fixed carbon and 80% fine flake (-100 mesh).
