Syrah Resources to resume production at Balama

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Industrial minerals and technology company Syrah Resources will restart production at the Balama Graphite Operation in Mozambique which was temporarily halted last year due to impacts of COVID-19.

Production at Balama was temporarily suspended in March 2020 as the Mozambique Government imposed travel restrictions which limited the mobility of the Balama workforce.

Weak end user demand and economic uncertainty impacting electric vehicle sales were also cited as reasons for halting production at Balama, forcing the company to announce a labour restructure and other actions in July 2020 in order to preserve cash during the period of suspended production.

Syrah said in a statement it is now able to manage within current travel restrictions, with market conditions also deemed supportive of recommencing production.

“Syrah will now progress the recruitment of labour required to restart operations at Balama, with first production expected within 2 to 3 months,” reads the statement.

The Balama graphite operation is a globally significant natural graphite resource with 50+ year mine life, and high reserve grade (16% total graphitic carbon).

Image credit: http://www.syrahresources.com.au/