Syrah Resumes Graphite Production at Mozambique’s Balama Mine

Syrah Resources

Restart of Graphite Operations After Protests

Syrah Resources has resumed graphite production at its Balama mine in Mozambique, with plans to restart large-scale shipments between September and December. The mine, which has a 350,000 t/yr capacity, was shut down due to prolonged protests that blocked access since late 2023.

The company declared force majeure in December, which remains active, but production is now restarting to rebuild inventories. Shipments will resume in September, targeting customers outside China as Syrah seeks to expand its global market share.

Strategic Focus on Ex-China Markets

Syrah chairman Jim Askew confirmed the company aims to increase sales from Balama this year, focusing on diversifying exports away from China. From January to March, Syrah only sold 1,300t of graphite using existing inventories, falling short of obligations.

By ramping up production, the company intends to re-establish stable supply chains and reassure buyers in key ex-China markets, including Europe and North America. This shift aligns with broader industry strategies to reduce dependence on Chinese-dominated graphite supply.

The Metalnomist Commentary

Syrah’s Balama restart underscores the volatility of global graphite supply chains amid political and social challenges in producing countries. While resuming shipments will ease near-term supply pressure, the company’s long-term success will depend on balancing local community concerns with its ambition to secure a stronger foothold in non-Chinese markets.