Balama graphite mine resumes access after prolonged protest disruptions

Syrah Resources

Syrah Resources has regained access to its Balama graphite mine in Mozambique, a key global source of natural graphite. The mine, with a nameplate capacity of 350,000 t/yr, had been cut off since late 2024 due to community-led protests that escalated during post-election unrest. The company confirmed on 5 May that site inspection and maintenance teams have been dispatched, although no formal restart timeline has been set.

Protest resolution clears path for operational recovery

The protests began in September 2024 when farmers blocked access to the Balama graphite mine. Tensions rose in October following Mozambique's national elections, leading Syrah to declare force majeure on some shipments. While operational staff evacuated, security personnel remained on-site. After months of negotiations, Syrah reached an agreement in April 2025 with both local farmers and the government. Authorities secured the mine fully on 3–4 May by removing remaining demonstrators.

Contractual impact and financial mitigation efforts

Syrah sold only 1,300 tonnes of graphite in Q1 2025 from inventory and failed to meet some contracted deliveries. As a result of the December disruptions, the company triggered default conditions on a $150 million loan from the U.S. International Development Finance Corporation (DFC). However, the DFC granted a waiver in January 2025, covering the first tranche and avoiding actual payment default. This financial flexibility may help Syrah stabilize operations at the Balama graphite mine once activities resume.

The Metalnomist Commentary

The reopening of the Balama graphite mine marks a critical moment for global natural graphite supply, especially amid surging EV battery demand. While the mine remains offline, Syrah’s proactive engagement with local stakeholders and the DFC waiver reflect a pragmatic path forward. However, long-term supply stability will require deeper social integration and geopolitical risk mitigation across Africa’s critical mineral hubs.