Syrah Resources aims to restart production at its Balama graphite project in Mozambique in the first quarter after declaring force majeure due to protests and civil unrest. CEO Shaun Verner noted improving stability in the region and ongoing efforts to address site disputes. The company is focused on navigating international trade policies affecting its operations and the graphite supply chain.
Syrah Resources intends to resume operations at its Balama graphite project in Mozambique within the first quarter, according to CEO Shaun Verner. The company had previously declared force majeure in December due to protests and civil unrest following the elections, which disrupted production and led to defaults on US-backed loans. Verner expressed optimism about the country’s improved stability over the past few weeks, highlighting ongoing efforts to resolve disputes at the site and a goal to restart production soon.
The Balama graphite project in Mozambique is significant for Syrah Resources, particularly as graphite is a key ingredient in the manufacturing of electric vehicle batteries. The declaration of force majeure, a legal clause enabling a party to evade liability due to unforeseen circumstances, was necessary due to local protests affecting operations. The political situation has resulted in increased scrutiny and concerns about supply chain interruptions.
In summary, Syrah Resources is working towards resuming graphite production at its Balama site in Mozambique, aiming to lift the force majeure declared last December. Improved stability in the region has raised hopes for the company’s operations, which are crucial given the demand for graphite in the growing electric vehicle market. CEO Shaun Verner’s comments underline the continuous efforts to resolve local disputes and adapt to international market conditions.
Original Source: clubofmozambique.com
