Australian company Syrah Resources, which exploits graphite in mines located in Balama district, Cabo Delgado, last week resumed activities after almost a month of stoppage due to a strike by workers.
The district administrator of Balama, Edson Lino, said during an interview to Radio Mozambique that there was consensus between the employers and workers on the points demanded, which allowed the resumption of activities.
Syrah Resources formally suspended operations on September 25 of this year, due to an “illegal strike” organized by a “small group of local employees and collaborators.
The company has begun restarting operations at its Balama operations in Mozambique, with production and logistics movements recommencing shortly.
It announced at the end of September that operations were halted following an interruption by “illegal industrial action by a small contingent of local employees and contractors”.
The company subsequently consulted with the relevant Mozambique Government authorities and concluded that the employee strike was instigated by a small group outside of a Company Level Agreement (CLA) negotiation process.
Syrah halted its Balama operations and moved its workforce from the site, though the company stressed that the actions of the small group of employees were “not deemed representative of the majority of the Balama workforce”.
Yesterday, Syrah said authorities had endorsed the CLA renewal process with the Internal Union Committee as the “correct process” for matters regarding Balama employment conditions.
Further, Syrah said the Mozambique Government ensured that illegal industrial action was not permitted to interrupt Balama operations.
Syrah said it was focused on preserving its “strong relationship” with employees, making a positive impact in its communities, and working constructively with the Union and the Mozambique government.
This is not the first time operations at Balama have had to be put on hold.
In June, Syrah suspended movement in one of its transport routes from its Balama project in Mozambique after reports of insurgent attacks occurring nearby.
The move was made as a safety precaution, with one of the conflicts occurring at a mine project site.
Shares in Syrah closed 1.14 per cent higher this Monday afternoon at $1.78.
