Syrah resumes graphite shipments from Mozambique mine

Australian graphite miner Syrah Resources Ltd. is resuming shipments from Mozambique after halting deliveries due to post-election violence in the southeast African nation.

The company, supported by the US International Development Finance Corp., said it restarted production at its Balama graphite mine last month and is now preparing shipments, according to a Wednesday statement. One cargo of the battery material is being loaded at Pemba port, and another is planned before the end of September, the firm said.

Syrah stopped operations in December, using a rule called force majeure that lets companies suspend deliveries because of events they can’t control — in this case, deadly civil unrest that rocked Mozambique following disputed elections.

The US government has loaned the firm nearly $250 million in funding through the DFC and Department of Energy to help build stronger supply chains. Graphite is important for modern technologies. China currently dominates in producing and processing graphite, which is used in electric vehicle batteries.

One of Syrah’s next two shipments is headed for unnamed customers in the US, the statement said. The company entered an agreement with Tesla Inc. in late 2021 to supply battery material from its plant in Louisiana, which sources feedstock from Balama. Syrah’s shares have risen by more than 40% since July 17 when US President Donald Trump said he will impose steep anti-dumping duties on imports of Chinese graphite.

Mozambican President Daniel Chapo told Bloomberg News this month that he expects to finish talks soon with TotalEnergies SE about resuming a $20 billion natural gas project. The project was halted four years ago because of attacks by an Islamic State-linked group.

(By Tavares Cebola and William Clowes)