Communication - Presse
Syrah Receives $6.5 Million from DFC to Relaunch Balama Graphite Mine
According to the company, the funding will be applied to working and sustaining capital after a ten-month suspension caused by political and social instability following the 2024 general elections. Syrah plans to raise an additional 288 million meticais ($4.5 million) in October as part of the restructuring of the same loan.
The company also has an additional credit line of 4.8 billion meticais ($75 million) with the DFC, although its availability depends on new conditions, with no guarantee of execution.
The mine’s suspension began in December 2024, when the company declared “force majeure” due to the political and social crisis following the elections, which triggered violent protests, resulting in 390 deaths and severe economic losses.
The instability led to the suspension of operations, layoffs, and delays in transporting materials, immediately impacting Syrah Resources’ share value, which fell 28%, and causing defaults on loans granted by the U.S. government. In a statement released on July 23, the mining company announced the resumption of graphite exports, one month after restarting production. One shipment is already being loaded at the port of Pemba, while another is scheduled for September.
Syrah emphasizes that it relies on DFC support to ensure continuity of operations, in addition to previous financing of 15.9 billion meticais ($248 million) granted by the DFC and the U.S. Department of Energy to sustain the Balama mine and build a processing unit in the United States.
The lifting of the force majeure at the end of July and the resumption of exports are seen as positive signs for the recovery of operations in Balama, one of the world’s largest producers of natural graphite, essential for electric vehicle batteries.
Observers also note that the approval in April of the law on the political agreement to pacify Mozambique, including the constitutional revision, is viewed as an important step to ensure security, consolidate peace, and attract new investments to the mining sector in Cabo Delgado.