The sequential restart of the Balama plant involves prioritising power restoration, camp preparation and site security.
Production of natural graphite is targeted to resume before the end of the June 2025 quarter, with shipments to follow once operations stabilize. Syrah had declared force majeure at the Balama site in December 2024 due to civil unrest following contested election results in Mozambique, which had disrupted activities at several mining operations across the region, including Balama.
The force majeure remains in place and will be lifted once production and shipments recommence, and the situation is reassessed. Earlier in May 2025, Syrah confirmed that protest activity had ceased and access to the Balama site had been restored.
Contractors are currently on-site conducting detailed inspections and maintenance preparations. No major structural or operational issues have been reported with the plant, the Ativa mine pit, tailings storage facility, or supporting infrastructure. Minor maintenance is ongoing to ready the facilities for operation.
Key areas including crushing, drying, filtration, flotation, milling, and product screening and bagging will be brought online sequentially in the coming weeks. The site holds an inventory of approximately 400,000 tonnes of run-of-mine ore, which Syrah expects will support at least three months of production after the plant restart.
While immediate mining activity is not required to resume production, the company plans to restart mining operations at a later stage. Syrah continues to coordinate with Mozambique’s national and provincial authorities, as well as local community leaders, to ensure the safe and smooth movement of personnel and materials in line with the terms of the Balama Mining Agreement.
In addition, Syrah is in dialogue with the US International Development Finance Corporation (DFC) and the US Department of Energy regarding earlier default events linked to financial disruptions caused by the operational halt. In January 2025, the company obtained a waiver related to default conditions under its USD150 million (approximately AUD238.66 million) loan from the DFC.
The DFC has also agreed to defer the semi-annual interest payment that was due in mid-May 2025. Syrah noted that this reflects ongoing cooperation aimed at addressing the financial impact of the temporary suspension of operations.
Syrah Resources remains focused on restoring full operational capacity at Balama and ensuring long-term stability through continued stakeholder engagement and strategic planning.
