Mozambique: Syrah Resources resumes graphite mining ahead of schedule after year’s stoppage

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Mozambique: Syrah Resources resumes graphite mining ahead of schedule after year’s stoppage

11:31 CAT | 16 Mar 2021

FILE - Balama. [File photo: Syrah Resources]

Australian mining company Syrah Resources has resumed production of graphite ahead of schedule at its Balama mine in Cabo Delgado, northern Mozambique, it said in a statement to shareholders on Tuesday.

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 Syrah MD and CEO Shaun Verner.

“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.

The Balama mine began commercial production four years ago, employing around 650 workers, almost all of whom are Mozambican.

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.

China is its biggest market and at the end of 2019 the mine also started supplying a company in the US.

Source: Lusa / The Market Herald / Mining Weekly