Syrah announces full restart of graphite mine in Mozambique, which also supplies Tesla

Graphite mining company Syrah announced to the Australian Stock Exchange today that it has resumed full operations in Cabo Delgado, northern Mozambique, following labor conflicts at the mine.

The Balama mine exports ore for manufacturing electric car batteries.

“Mining, processing, and logistics operations have resumed at Balama without restrictions,” after understanding “with employees and subcontractors,” the statement said.

Syrah says that operations and the renewal of the company agreement “are being carried out with the support of the competent authorities of the Government of Mozambique” and in dialogue “with the designated representatives of its unionized workforce.”

The mine stopped in September, in what the company called an “illegal strike,” accusing a group of workers of having jeopardized the safety of the space.

The exploitation of graphite for export is one of the activities in which the Mozambican government expects great growth in 2023.

The State Budget for 2023 foresees “a growth in production in the order of 48% to 270 thousand tons,” and Syrah is one of the main operators.

The Balama mine produced about 38 thousand tons of graphite in the third quarter of 2022, and most of the material was exported through the port of Nacala, in Nampula province.

For the same period, the company had already announced sales of 55,000 tons.

The Australian company’s operations have suffered a troubled year, reflecting the instability in northern Mozambique.

In June, the logistics chain had already been temporarily suspended due to attacks by rebels tormenting Cabo Delgado for five years and approaching the road through which the graphite is sold.

The Balama mine began commercial production four years ago and was highlighted in December when Syrah announced a deal with multinational electric vehicle company Tesla, which intends to use graphite from the mine – which is described as one of the largest “quality” deposits in the world by the Australian company itself.