Syrah Resources has restarted graphite production at its Balama mine in Mozambique after restoring site access and completing maintenance. Operations will ramp up in phases, targeting ex-China markets amid global supply disruptions. The company continues addressing local resettlement issues, while a force majeure remains in place pending shipment resumption and further review.
Syrah Resources, an Australian-based mining company, has resumed natural graphite production at its Balama project in Mozambique. The restart follows the successful restoration of site access in May, coupled with the completion of essential preparatory activities such as equipment inspections and maintenance work. With operations now back underway, the company plans to gradually scale up both plant utilisation and output as part of a structured operational campaign designed to rebuild its inventory of finished graphite products.
The resumption of operations at Balama comes at a critical time, as global supply chains continue to face significant disruptions. Syrah noted a strong and growing underlying demand for its natural graphite, particularly in markets outside of China, where supply constraints have created increased reliance on alternative sources. In response to this demand, the company intends to focus on high-volume breakbulk shipments, a move aimed at accelerating deliveries to customers and improving near-term cash flow.
Production at Balama will proceed in what the company refers to as "campaign mode," meaning operations will be conducted in concentrated periods based on prevailing market demand. This approach offers operational flexibility while allowing Syrah to respond dynamically to market conditions. The company emphasized that ramping up production would be aligned with the broader objective of efficiently managing inventory and optimizing supply chain logistics.
Syrah also acknowledged that challenges remain on the ground, particularly regarding community resettlement and access to the mine. To address these issues, the company continues to work closely with the Mozambican government and local stakeholders to find sustainable, long-term solutions that support uninterrupted access to the site.
Despite the restart of production, the force majeure declared earlier in the year remains in effect. This legal designation will stay in place until the company is able to resume product shipments and complete a further assessment of the operational environment. Shipments to ex-China destinations are expected to recommence in the upcoming September quarter, which would mark a significant milestone in Syrah’s post-disruption recovery efforts.
The company remains cautiously optimistic about its ability to meet global demand and re-establish a steady flow of graphite supply from Balama. Its strategy reflects a commitment to operational resilience, market responsiveness, and stakeholder engagement, all of which will be crucial in ensuring the long-term viability of the Balama operation amid a volatile global supply landscape.
Syrah is a publicly listed company on the Australian Securities Exchange, specializing in industrial minerals and technology. The company operates the Balama Graphite Project in Mozambique as its flagship asset and runs a downstream Active Anode Material (AAM) facility in the United States. Syrah aims to become the global leader in delivering high-quality graphite and anode material solutions, collaborating closely with customers and partners across the supply chain to drive value in battery and industrial markets.
