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Syrah Resources (ASX:SYR) resumes unrestricted operations at Balama following employee strike

ASX News, Mining
ASX:SYR      MCAP $446.1M
27 October 2022 14:43 (AEST)

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Syrah Resources (SYR) has resumed unrestricted logistics movements and mining and processing operations at its Balama graphite operation in Mozambique.

The company said the resumption of the operation comes with “the full complement
of the company’s employees and contractors onsite”.

In September, Syrah announced that operations were halted following an interruption by “illegal industrial action by a small contingent of local employees and contractors”.

Syrah subsequently consulted with the relevant Mozambique Government authorities and concluded that the employee strike was instigated by a small group outside of a Company Level Agreement (CLA) negotiation process.

Currently, the company is continuing to work through the periodic renewal of employment conditions under the CLA with designated representatives of its unionised workforce.

In a statement to the ASX, Syrah said operations and the CLA renewal were being undertaken with the support of the relevant Mozambique government authorities.

This is not the first time operations at Balama have had to be put on hold.

In June, Syrah suspended movement in one of its transport routes from its Balama project in Mozambique after reports of insurgent attacks occurring nearby.

The move was made as a safety precaution, with one of the conflicts occurring at a mine project site.

Shares in Syrah were up 2.13 per cent and trading at $2.40 at 2:40 pm AEST.

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