Syrah finally back at it in Mozambique after Balama site access restored

Syrah Resources (ASX:SYR) has just this week restarted production at its Balama Graphite Operation in Mozambique, a little over half a year after the company declared a force majeure at its promising South African play.

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The company first pulled the contractual lever – and begrudgingly downed tools – in late 2024 as violence in Mozambique hit a new level after elections.

(Fellow Mozambique-based miner South32 (ASX:S32) was similarly impacted.)

Syrah has since been hard at work trying to get everything moving again after having Balama site access restored in May. The producer had to remobilise its workforce, inspect the project, run repairs, and re-run preparations.

For the time being, Syrah’s declaration of a force majeure event remains in force, though that should be wrapped up once the miner restarts shipping.

Syrah seems quite hopeful things can get back to normal before long, especially because “there’s a significant and growing latent demand for Syrah’s natural graphite products, particularly in the ex-China market, due to global supply disruptions” – at least, that’s according to the company on Thursday.

To meet demand, Syrah is ramping up product deliveries through mid-2025; large volume breakbulk shipments to several non-China destinations will be a key focus late this year once inventory is available again.

The company will also ask for all cash receipts to be brought forward as it restarts.

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There’s never a guarantee – especially considering how 2025 has been playing out – but it does seem like things are returning to normal for Syrah. The company continues to work with the Mozambique government and Cabo Delgado authorities to ensure “ongoing support for the operation.”

A critical focus for Syrah’s brass through the rest of this tumultuous year, as well as into the future, will be making sure any agreements will also ensure “the free movement of goods and people to and from the Balama site.”

SYR will head into Thursday trade at 26cps after dipping 1.9% yesterday.

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