Syrah Resources expects to resume natural graphite production at its Balama mine in northern Mozambique by June, which is intended for electric car batteries, after months of shutdown due to social unrest.
Syrah stated that it was ”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 adds that 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 will prioritise breakbulk shipments to shorten delivery times for its customers and bring forward cash receipts,” the information states.
Syrah announced on 5th May, that it had regained access to the graphite mine it operates in Balama, about five months after invoking “force majeure” due to the worsening of post-election demonstrations.
Following a formal agreement signed between farmers, Mozambican government authorities and the company, most of the protesters stopped the protests in Balama in April 2025. A small group of people continued to block access to the site without legitimate reason, nor any complaint against Syrah.
The company has been remobilising teams to the site of the operation for “inspection and maintenance” activities to resume operations: “Inspections to date have not identified any significant issues with Balama plant or equipment at the Ativa mine pit, tailings storage facility or associated infrastructure.”
The mining company had announced on 12th December, also in a market announcement, that it had invoked “force majeure” due to the worsening of demonstrations and protests against the results of the general elections of 9th October 2024, which were conditioning activity at the graphite mine in Balama.
The term “force majeure” is a legal concept that refers to external, unpredictable and unavoidable events that prevent the fulfilment of contractual obligations.
“With conditions continuing to deteriorate in Mozambique and new protest actions by the opposition to the government announced recently, Syrah is unable to carry out a production campaign in Balama in the last quarter of 2024, which is necessary to replenish the inventory of finished products and for sales to customers. Consequently, a case of force majeure is declared under the terms of the mining agreement,” the report said.
According to Syrah, the initial dispute involved a “small group” of local farmers, with “historical grievances regarding the resettlement of agricultural land” that had not been resolved.
The Australian firm is also building, in Vidalia, in the United States of America, a factory to produce material for electric car batteries, which will be powered by Mozambican ore.
Graphite production in Mozambique, for electric car batteries, fell 64% in 2024, to 34,899 tonnes, one of the lowest records in recent years, according to government data reported in February.
