Australia’s Syrah Resources has declared force majeure at its Balama graphite mine in Mozambique as the country grapples with post-election civil unrest. The political turmoil, stemming from contested October general election results, has disrupted mining operations nationwide and significantly hampered governmental functions.
Protests at the Balama site, initially tied to grievances over farmland resettlement, have escalated since late September. These protests, coupled with broader unrest, have hindered operations, supply chains, and site access, prompting Syrah to demobilise most personnel while maintaining security.
“The movement of people and supplies, site access, and plant operations have continued to be interrupted,” Syrah said in a statement.
The ongoing disruptions have forced Syrah to cease production at its 350,000 t/y Balama operation for the December 2024 quarter. The company cited an inability to replenish inventory or meet customer sales commitments.
Broader national protests, exacerbated by delays in forming Mozambique’s new government until January 2025, have compounded the challenges. The situation has also triggered loan defaults with the US International Development Finance Corporation (DFC) and the US Department of Energy (DOE), with Syrah actively engaging these entities to address the fallout.
The unrest has taken a toll on Syrah’s financial performance, with its stock plummeting by 30% on Thursday.
