After a period of disruption, Australia’s Syrah Resources has announced the restart of natural graphite production at its crucial Balama operation in Mozambique. The recommencement, revealed on Thursday, follows the successful restoration of site access in May and the meticulous completion of preparatory work, including essential inspection and maintenance.
The ASX-listed company, a significant player in the global graphite market, stated it would progressively ramp up plant utilisation and production volumes. This strategic operating campaign is aimed at rapidly restocking its finished product inventory, which has likely been depleted during the downtime. Crucially, Syrah anticipates that shipments to markets outside of China will resume in the upcoming September quarter, a move that will be closely watched by industries reliant on this vital mineral.
The restart comes at a fortuitous time for Syrah. “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 highlighted in a statement. This surge in demand underscores the strategic importance of the Balama mine in meeting the world’s increasing need for graphite, a key component in electric vehicle batteries and other high-tech applications.
In an effort to accelerate customer deliveries and bolster cash inflows, Syrah will initially prioritise large-volume breakbulk shipments. The company also confirmed that operations at Balama will continue in a “campaign mode,” a flexible approach that will see production adjusted in response to evolving market demand.
Despite the positive news of resumed production, underlying challenges persist. Syrah disclosed that it remains in active engagement with the Mozambique government and local stakeholders to resolve ongoing resettlement issues, which are critical to ensuring unimpeded access to the mine site in the long term. A force majeure declaration, initially made earlier this year, remains in effect. The company noted that this declaration will be subject to a further review of on-the-ground conditions once product shipments have fully resumed, signalling that while production is back online, the path to full operational stability still requires careful navigation.
