Posted on 25 Jun 2025
Australian integrated anode material company Syrah Resources has started natural graphite production in Mozambique’s Cabo Delgado province, Kallanish learns.
The resumption at its Balama graphite operation follows inspection, maintenance and preparatory activities last month. The company says it intends to increase plant utilisation and production volumes to restock finished product inventory and prepare for high-volume shipments.
Syrah declared force majeure at the operation last December, following protests that started in September 2024, impeding the company from operating its site. At first, the protests were linked to a small group of farmers with historical farmland resettlement grievances. However, protests continued following Mozambique’s election, interrupting the movement of people and supplies, site access and plant operations, although Syrah says the actions have been peaceful. The suspension also came amid weak graphite prices.
“There is significant and growing latent demand for Syrah’s natural graphite products, particularly in the ex-China market, due to global supply disruptions, including those from Balama,” the company says.
To accelerate product deliveries to customers and bring forward cash receipts, Syrah is planning to initially complete large volume breakbulk shipments to ex-China markets in the September 2025 quarter.
Under the terms of the Balama Mining Agreement, the previous declaration of a force majeure event remains effective, pending resumption of product shipments and further review of the operating environment.
The Balama mine has a production capacity of 350,000 tonnes/year of graphite, with reserves of 16.9 million tonnes in contained graphite. The operation supplies South Korea’s battery material producer Posco Future M with 2,000 t of natural graphite fines per month, under an agreement signed in March 2024. It has also supplied Chinese battery company BTR’s Indonesia plant.
The operation also provides feedstock to Syrah’s downstream operation in Louisiana, US. The Vidalia plant can produce 11,250 t/y of anode active materials. Capacity is planned to be expanded to 45,000 t/y.
Source:Kallanish
