ASX-listed Syrah Resources plans to restart natural graphite production at its Balama operation in Mozambique before the end of the June 2025 quarter, following the restoration of site access earlier this month.
Maintenance and inspection teams, along with key contractors for services such as camp management, mining, mobile equipment, and power supply, have returned to site to prepare for the restart.
According to the company, inspections so far have revealed no significant damage to the processing plant, Ativa pit, tailings storage facility, or other infrastructure.
However, minor maintenance is required prior to and during the staged recommissioning process, owing to the extended shutdown.
Operations at Balama were suspended in February after community protests blocked site access. Although Syrah declared force majeure under its Balama Mining Agreement, it has since worked closely with the Mozambican government and regional authorities to restore site stability and enable a safe return to operations.
The restart will begin with restoring power, preparing the camp, and reinforcing site security, followed by the phased recommissioning of critical processing circuits, including crushing, milling, flotation, filtration, drying, and product screening and bagging.
Syrah noted its teams are well-practiced in restarting Balama’s operations, having previously done so after pandemic-related disruptions and during periods of campaign-based production.
Currently, the site has around 400,000 tonnes of run-of-mine ore stockpiled, which is expected to support at least three months of production without the need to resume mining immediately. Mining operations will restart at a later stage.
Product shipments are expected to resume several weeks after the plant becomes operational. To accelerate delivery and enhance cash flow, the company will prioritise breakbulk shipments.
Syrah also highlighted growing demand for its natural graphite products, driven by supply disruptions in the ex-China market, including from Balama itself. The company’s finished product inventory is now fully depleted.
Meanwhile, Syrah is working to resolve past defaults under its loan agreements with the U.S. International Development Finance Corporation (DFC) and the U.S. Department of Energy, triggered by the February disruptions.
As part of ongoing discussions, the DFC has agreed to defer Syrah’s May 2025 interest payment.
