Australian mining company Syrah Resources plans to resume natural graphite production at the Balama mine in northern Mozambique by the end of the second quarter of 2025, after a long suspension caused by social unrest related to post-election protests. Production is destined for the electric vehicle battery industry, and the company intends to ship the extracted material a few weeks after operations resume.
In an official communication to the markets, Syrah stated that demand for its natural graphite is growing, partly due to global supply disruptions outside of China. Currently, the company’s inventory is completely depleted. To respond quickly to customer needs and obtain early revenue, the company will prioritize direct sea shipments (breakbulk), which guarantee shorter delivery times.
Syrah had declared “force majeure” on December 12, 2024, a contractual clause activated in the event of unforeseen events that prevent the fulfillment of obligations, due to protests following the general elections of October 9. These demonstrations, initially peaceful, were linked to historical claims by a small group of local farmers for compensation for expropriated agricultural land.
Access to the mine site was restored only in May 2025, after the intervention of Mozambican authorities who removed the last protesters considered “illegal.” A formal agreement between farmers, the government, and the company led to the end of most protests in April 2025.
Syrah has begun remobilizing personnel at the site to carry out inspection and maintenance activities. So far, no significant damage has been detected to either the plant or the mine’s infrastructure. Graphite production in Mozambique experienced a drastic decline in 2024, with a 64% decrease, falling to 34,899 tonnes — one of the lowest levels in recent years, according to government data.
Syrah is also building a factory in the United States, in Vidalia, Louisiana, for the processing of Mozambican ore into materials destined for electric vehicle batteries, thereby strengthening the production chain outside of China.
