Balama’s production increase mirrors Mozambique’s goals
Syrah Resources wants to gradually increase production at its Balama mine in Mozambique. The move aligns with the country’s ambition to revive its graphite industry.
In a presentation released 22nd May 2026, the company repeated its target of eventually raising annual output at Balama to between 200,000 and 240,000 tons. If reached, that level could help Mozambique recover part of the production it lost over the past few years.
According to data from the U.S. Geological Survey (USGS), Mozambique’s graphite output fell from 170,000 tons in 2022 to about 60,000 tons in 2025. That decline allowed Madagascar to become Africa’s largest graphite producer, with output reaching nearly 80,000 tons during the same period.
The drop in Mozambique’s production followed repeated shutdowns at some of the country’s largest industrial graphite mines, including Balama and AMG’s Ancuabe operation.
Balama still producing below capacity
Syrah suspended operations at Balama several times between 2023 and 2024 because of operational challenges and weak market conditions before restarting the mine in June 2025.
Production remains below the mine’s full capacity. Balama currently operates at a production rate of between 100,000 and 120,000 tons per year, according to the company. Syrah says output could eventually rise to between 200,000 and 240,000 tons annually, although it has not provided a timeline.
The mine has a nameplate capacity of 350,000 tons per year, making it one of the world’s largest graphite operations. But Syrah says future expansion will depend largely on market conditions, including stronger demand and support measures for graphite producers outside China.
Weak prices continue to pressure the market
The global graphite market remains oversupplied, largely because of high stock levels in China. That has continued to weigh on prices and pushed Syrah to operate Balama more flexibly, adjusting production according to market conditions. The project also fits into broader efforts by Western countries to diversify critical mineral supply chains away from China.
Syrah already receives support from the U.S. International Development Finance Corporation (DFC). Beyond Balama, Mozambique’s graphite industry could also benefit from other projects now under development, including a proposed mine by Triton Minerals.
