- Following a COVID-related suspension, Syrah Resources (SYR) has resumed natural graphite production at its Balama Operation in Mozambique
- Having achieved consistent production through March, the company is around two or three months ahead of schedule
- Volumes at the plant will be progressively increased as the full contingent of its workforce is reinstated
- Syrah Resources is up 3.45 per cent to $1.20 per share
Following a COVID-related suspension, Syrah Resources (SYR) has resumed natural graphite production at its Balama Operation in Mozambique.
The plant’s activities were halted in late March last year following the country’s implementation of measures to contain the spreading coronavirus. These included restrictions on both international and domestic travel, which impacted a significant portion of the operation’s workforce.
Having achieved consistent production of “on-specification” natural graphite throughout March, the company is ahead of schedule by two or three months — the typical lead time for first production.
Syrah said it will now progressively increase both the utilisation of the plant and production volumes as Balama’s labour force continues to be reinstated.
“During the period of temporary suspension at Balama, we reduced costs whilst also maintaining operating and marketing capability to ensure that we could promptly respond to an improvement in market conditions,” said Shaun Verner, Managing Director and CEO of Syrah Resources.
“Our re-start progress to date is a testament to the ongoing preparedness work by the Balama Operations team during the temporary suspension and positions us well to ramp-up into improving market demand,” he added.
Located in the Cabo Delgado Province, the open-pit Balama Operation has an expected life of approximately 50 years and a plant capacity of around 350,000 tonnes of graphite concentrate per year.
Syrah Resources is up 3.45 per cent to $1.20 per share at 10:46 am AEDT.