Australia’s Syrah Resources has declared a force majeure at its Balama graphite mine in Mozambique due to escalating civil unrest following contested general election results.
The protests, which began in late September over farmland resettlement grievances, have intensified since the October 9 election results were announced.
These disruptions, initially linked to a small group of farmers, have broadened to include segments of the local population raising unrelated concerns.
Syrah stated that site access, personnel movement, supply deliveries, and plant operations have been severely impacted. The company has demobilized most operational personnel from the site, retaining only contract security staff.
As conditions across Mozambique worsen and further protests against the national government are anticipated, Syrah is unable to carry out a production campaign at its 350,000 t/y Balama operation during the December 2024 quarter. This disruption prevents the company from replenishing finished product inventory and fulfilling customer sales.
The broader unrest has delayed the formation of Mozambique’s new government until January 2025, complicating the resolution of protests at Balama. Syrah noted that addressing these issues will take time due to the nationwide instability.
Additionally, the prolonged protest actions have triggered default events on Syrah’s loans with the US International Development Finance Corporation (DFC) and the US Department of Energy (DoE). The company is in discussions with these entities regarding the defaults.
Syrah’s stock plunged approximately 30% on Thursday in response to these developments.
