Syrah Resources hopes to resume production of Mozambique site in first quarter

Syrah Resources

05/02/2025 15:31

By Nqobile Dludla
       CAPE TOWN, Feb 5 (Reuters) - Syrah Resources  SYR.AX 
hopes to restart production at its Balama graphite project in
Mozambique during the first quarter, which will ultimately lead
to the lifting of force majeure, the Australian company's chief
executive said on Wednesday. 
    The company declared force majeure in December due to
disruptions from protests, exacerbated by civil unrest following
Mozambique's election results in October, which also led the
company to default on its U.S.-backed loans.
    "The stability in the country is improving significantly.
The last two or three weeks have certainly been much better than
the period beforehand," Syrah Resources Managing Director and
CEO Shaun Verner told Reuters on the sidelines of the Africa
Mining Indaba. 
    "We're working at the moment to resolve the dispute that we
have at (the) site and working hard to try and be back in
production during this quarter. It's not certain at this stage
but certainly that is the objective."
    The company had said that farmer-led protests at the Balama
project began in late September and have been hindering the
movement of people and supplies and disrupting operations.
    Force majeure is a clause that allows parties in a contract
to avoid liability for unexpected external circumstances that
prevent them from meeting obligations. 
    When asked about the impact on the industry of U.S.
President Donald Trump's proposed 10% tariffs on all Chinese
imports, Verner said: "Any additional tariffs are beneficial."
    He noted that the existing U.S. tariff of 25% on anode
material from China was a first step at trying to help rebalance
the increased volumes from China at lower prices.
    "But ultimately what we're seeking is some level playing
field for us to be able to compete and continue to increase
supply and diversify the sources of supply into the U.S.," he
added.
    Syrah has an active anode material facility in Louisiana,
United States. The material is one of the key components needed
by battery manufacturers and car makers. 
    In December, Syrah said its unit, Syrah Technologies LLC,
filed an anti-dumping and countervailing duty petition with the
U.S. Department of Commerce and the International Trade
Commission.
    Its petition, submitted in collaboration with the North
American Graphite Alliance, sought an investigation into Chinese
exports of natural and synthetic graphite active anode material
used in lithium-ion batteries.
    Graphite is the largest component by volume in an electric
vehicle battery and China is the largest producer.
    

 (Reporting by Nqobile Dludla. Editing by Jane Merriman)
 ((nqobile.dludla@thomsonreuters.com; +27103461066;))