Syrah Resources: Balama update – ASX Announcement / Media Release

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Syrah Resources: Balama update – ASX Announcement / Media Release

12:37 CAT | 26 Sep 2022

FILE - For illustration purposes only. [File photo: Syrah Resources]

26September2022

Syrah Resources Limited (ASX:SYR) (“Syrah” or “Company”) advises that operations at Balama Graphite Operation (“Balama”) in Mozambique have been interrupted by illegal industrial action by a small contingent of local employees and contractors.

Due to this contingent of people stopping work, disrupted access to site ando ut of caution for the safety of Syrah’s employees and contractors, Balama operations were halted and the Company’s workforce was moved from site on Tuesday, 20 September 2022, Mozambique time.

Under the Company Level Agreement (“CLA”) covering the majority of site employees, Syrah has been engaged in good faith discussions for periodic renewal of conditions with the designated representatives of its unionised workforce, with the involvement of the Internal Union Committee(“Union”),and with the relevant Mozambique Government representatives. The illegal industrial action was instigated by a small group outside of the CLA negotiation process, and the actions taken by this group are not deemed representative of the majority of the Balama workforce. Syrah’s strong relationship with and commitment to employees, communities and the Mozambique Government have been integral to the successful development and operations at Balama.

The Company is working with Union and Mozambique Government representatives to progress negotiations and, concurrently, with security services to ensure the safety of all personnel and stakeholders and preserve plant integrity during the period of disruption. Syrah is focussed on resolving the industrial action through mediation and negotiation under the legal framework of the CLA in order to safely restart operations at Balama. Syrah fully supports the rights of employees and contractors to collectively organise under Mozambican labour law and is committed to working constructively with the Union to resolve outstanding issues.

Following a review of security, the Company is coordinating the return of employees and contractors to return to site and planning for Balama’s full operational capability to be restored as soon as possible.

Balama has produced 38kt natural graphite for the quarter to date. Natural graphite sales are54ktfor the quarter to date with approximately 5kt of further shipments from Nacala this month that will not be impacted by the industrial action. The majority of finished product inventory is located at the port.

This release was authorised on behalf of the Syrah Board by

Shaun Verner, Managing Director

Source: Syrah Resources - ASX Announcement / Media Release