Syrah Resources has commenced the process of restarting its Balama graphite operation in Mozambique, with maintenance and inspection teams back on site.

The sequential restart of the Balama plant involves prioritising power restoration, camp preparation and site security.

The company aims to resume natural graphite production before the end of the June 2025 quarter, with product shipments to follow.

Syrah declared force majeure at the mine in December last year, citing widespread civil unrest stemming from disputed general election results in Mozambique. The unrest disrupted operations at multiple mining sites including Balama.

The force majeure remains in effect until production and shipments resume and the operating environment is reassessed.

Earlier this month, Syrah announced that protest actions at the mine site were cleared and access to Balama site had been restored.

The company's contractors are present at the site to conduct thorough inspections and prepare for the resumption of operations.

No significant issues have been identified with the Balama plant, Ativa mine pit, tailings storage or infrastructure, although minor maintenance is required.

The crushing, drying, filtration, flotation, milling, and product screening and bagging areas will be prepared in sequence over the coming weeks.

With an inventory of approximately 400,000 tonnes (t) of run-of-mine ore available, Syrah anticipates at least three months of plant operations post-restart.

While mining activities are not immediately critical for production resumption, they will recommence in due course, the company stated.

The company is engaging with Mozambique's national and provincial authorities, as well as community leaders, to facilitate ongoing support for the Balama operation. This includes ensuring the free movement of goods and people to and from the site as stipulated in the Balama Mining Agreement.

Syrah Resources is also in discussions with the US International Development Finance Corporation (DFC) and the Department of Energy regarding historical events of default related to loans affected by disruptions at Balama.

The DFC has deferred the first half-yearly interest payment due in mid-May 2025, indicating a cooperative approach to resolving the financial implications of the operational halt.

In January 2025, Syrah secured a waiver for default events under its US International DFC loan of $150m (A$238.66m).

"Syrah Resources to restart Balama graphite operation in Mozambique" was originally created and published by Mining Technology, a GlobalData owned brand.

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