Graphite company suspends transport due to attack in Ancuabe – AIM report

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Graphite company suspends transport due to attack in Ancuabe – AIM report

8:51 CAT | 13 Jun 2022

Map: Wikimedia Commons

Syrah Resources and Triton, two Australian companies operating graphite mines in the northern Mozambican province of Cabo Delgado, have suspended all travel to their area of operations, following a terrorist attack in Ancuabe district last Sunday.

The shares of Syrah Resources immediately fell in value by 15 percent.

A release from Syrah, which operates a mine in the neighbouring district of Balama, noted these were “the first confirmed attacks in the district of Ancuabe. Prior to these incidents there had been a significant improvement in the overall security situation in Cabo Delgado”.

The two incidents occurred between 30 and 40 km from the main north-south highway (N1), which is the main transport route between to the ports of Nacala and Pemba.

Syrah said it has now taken the precautionary measure of suspending all personnel and logistics movements along this stretch of road “until further information is available”. There has been no impact so far on graphite mining and processing in Balama.

“Syrah’s highest priority is the health and safety of its employees and contract workers. The company remains in close contact with the Government, security authorities and other stakeholders to monitor the situation and assess the safe resumption of transport operations”, said the statement.

“Syrah will continue to brief the stock exchange on the security situation and any impacts on Balama operations”, it added.

Earlier, in an annual report on its operations, Syrah had claimed to have “significant security measures and protocols in Balama. But these security measures do not guarantee that (security) risks will not recur.”

For its part, Triton, which is developing a graphite project in Ancuabe, issued no statement other than to suspend trading on the Australian stock exchange.

Another company, Battery Minerals, which also operates in Cabo Delgado, said it was not affected by the latest terrorist actions.

The U.S. Department of Energy recently announced that it was going to lend 107 million dollars to Syrah Resources to expand an electric vehicle battery parts plant in the state of Louisiana.

Syrah has plans to use the loan to help finance the expansion of a plant in Louisiana that will process graphite mined from Mozambique into anodes, the positively charged electrode of a battery.

The facility is expected to produce enough anodes to build 2.3 million electric cars by 2040.

Source: AIM