Syrah’s subsidiary Twigg secures US$6.5m DFC loan for Balama, with future disbursements dependent on loan restructure and conditions.
Syrah Resources Limited has announced that its wholly owned subsidiary, Twigg Exploration and Mining Limitada (“Twigg”), has successfully secured an additional loan disbursement from the United States International Development Finance Corporation (“DFC”). The company confirmed that Twigg has received a sum of US$6.5 million under the existing loan agreement. This latest funding will be directed toward supporting the Balama Graphite Operation in Mozambique, a flagship project of Syrah.
The disbursed funds are specifically allocated for working capital and sustaining capital requirements at the Balama project. These include maintaining ongoing operations, ensuring adequate cash flow for production activities, and securing the financial stability needed to support the mine’s medium-term operational goals. Balama remains one of the most significant natural graphite projects globally, and maintaining uninterrupted activity is vital for Syrah’s supply chain commitments and strategic customer partnerships.
In addition to the recently completed disbursement, Syrah stated that it is planning for a further US$4.5 million disbursement in October 2025, pending finalization of arrangements. This next tranche is subject to approval and hinges on the company’s ability to meet the requirements outlined by the DFC.
While Syrah’s DFC loan provides a total commitment of up to US$75 million, the company emphasized that future disbursements are not guaranteed. The continuation of funding will depend on the outcome of a proposed loan restructure, expected to be addressed in the September 2025 quarter. The restructure is intended to realign the loan terms with current operational and financial conditions, ensuring both parties’ objectives are met.
The company cautioned that there is no certainty that further loan disbursements will occur, as approval depends on meeting new conditions set forth by the DFC. These conditions are expected to involve financial and operational milestones, compliance measures, and updated risk assessments relating to Balama’s operations in Mozambique.
Syrah highlighted that securing the disbursements is essential for ensuring stability in the Balama project, which plays a critical role in the supply of graphite for global battery markets. Graphite from Balama is a key raw material used in electric vehicle (EV) batteries and energy storage systems, placing the operation in a strategically important position in the global clean energy transition.
The company reaffirmed its commitment to working with the DFC to address the restructuring requirements and to secure the additional funds. Despite the uncertainties surrounding future tranches, Syrah expressed confidence that the Balama project will continue to serve as a cornerstone of its growth strategy and an important contributor to the global graphite supply chain.
