Australia's Syrah Resources secures loan waiver amid Mozambique unrest (updated)

Syrah Resources

06/01/2025 23:45

(Updates with background in para 2, further details in paras
3-5 and share price in para 6)
       Jan 7 (Reuters) - Australia's Syrah Resources  SYR.AX 
said on Tuesday it has secured a waiver for default events under
its United States International Development Finance Corporation
(DFC) loan of $150 million, granting it relief following
operational disruptions at its Balama Graphite operation in
Mozambique due to ongoing nationwide protests.
        The company 
    suspended
     operations at its flagship graphite mine in December,
following disruptions caused by farmer-led protests since
September 2024. Despite the suspension, Syrah has not defaulted
on any loan payment obligations.
  
        The Melbourne-based miner received a $53 million tranche
in November 2024, which is now available for Balama's working
capital. 
  
        While the remaining balance is committed, "further DFC
loan disbursements are not available while Balama operations are
blocked by the protest actions," Syrah said in a statement.
  
        "Operating conditions in Mozambique are challenging with
    ongoing nationwide protests
     associated with general elections causing widespread
disruptions throughout the country," it added.
  
        Syrah said it is actively collaborating with the DFC and
the U.S. Department of Energy regarding these default events as
the nationwide protests continue to disrupt operations across
Mozambique.
  
        Shares of the miner were up 2.3% to A$0.22 in early
trade.
  

 (Reporting by Kumar Tanishk in Bengaluru; Editing by Tasim
Zahid)
 ((Tanishk.Kumar@thomsonreuters.com;))