Australia’s Syrah Resources secures loan waiver amid Mozambique unrest – Reuters

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Australia’s Syrah Resources secures loan waiver amid Mozambique unrest – Reuters

9:00 CAT | 07 Jan 2025

FILE - Syrah produces natural graphite from its Balama project in Mozambique. [File photo: Syrah Resources]

Australia’s Syrah Resources said on Tuesday it has secured a waiver for default events under its United States International Development Finance Corporation (DFC) loan of $150 million, granting it relief following operational disruptions at its Balama Graphite operation in Mozambique due to ongoing nationwide protests.

The company suspended operations at its flagship graphite mine in December, following disruptions caused by farmer-led protests since September 2024. Despite the suspension, Syrah has not defaulted on any loan payment obligations.

The Melbourne-based miner received a $53 million tranche in November 2024, which is now available for Balama’s working capital.

While the remaining balance is committed, “further DFC loan disbursements are not available while Balama operations are blocked by the protest actions,” Syrah said in a statement.

“Operating conditions in Mozambique are challenging with ongoing nationwide protests associated with general elections causing widespread disruptions throughout the country,” it added.

Syrah said it is actively collaborating with the DFC and the U.S. Department of Energy regarding these default events as the nationwide protests continue to disrupt operations across Mozambique.

Shares of the miner were up 2.3% to A$0.22 in early trade.

READ: Syrah declares force majeure for its graphite mine in Mozambique – Bloomberg

Syrah and DFC have agreed to a waiver of the events of default under Syrah’s DFC loan, subject to certain conditions.

Read the full $SYR release: https://t.co/eluDYW29gl pic.twitter.com/DTBJQZ0ZvS

— Syrah Resources (@SyrahResources) January 6, 2025