Syrah Resources, an Australian mining company, announced on Tuesday that it has obtained a waiver for default events under its $150 million loan from the United States International Development Finance Corporation (DFC).
This waiver provides relief following operational disruptions at the company’s Balama Graphite operation in Mozambique due to ongoing nationwide protests.
The protests, primarily led by farmers, began in September 2024 and escalated, prompting Syrah to suspend operations at its flagship graphite mine in December. Despite the suspension, the company has maintained its loan payment obligations and avoided default.
In November 2024, Syrah received a $53 million tranche of the DFC loan, which remains available for Balama’s working capital.
However, the company noted that further loan disbursements are currently unavailable due to the ongoing blockade of its operations by protest actions.
“Operating conditions in Mozambique are challenging, with ongoing nationwide protests linked to general elections causing widespread disruptions throughout the country,” Syrah stated.
The company is actively engaging with the DFC and the U.S. Department of Energy to address the situation. Nationwide unrest continues to pose significant obstacles for businesses operating in Mozambique, including Syrah’s graphite production.
Despite the challenges, Syrah’s shares rose by 2.3%, trading at A$0.22 in early market activity.
