Graphite mining company Syrah today announced to the Australian Stock Exchange that it has resumed full operations at Cabo Delgado, in northern Mozambique, following labor disputes at the mine.
The Balama mine exports ore for the production of electric car batteries.
“Mining, processing and logistics operations have resumed in Balama without restrictions,” following an understanding “with employees and subcontractors,” the statement said.
Syrah says the company’s operations and contract renewal “are being carried out with the support of the competent authorities of the Government of Mozambique” and in dialogue “with certain representatives of its united workforce”.
The mine was halted in September in what the company called an “illegal strike,” accusing a group of workers of endangering the safety of the space.
The exploitation of graphite for export is one of the activities in which the Mozambican government expects large growth in 2023.
The State Budget for 2023 foresees “a 48% increase in production to 270 thousand tons”, and Syrah is one of the main operators.
The Balama mine produced about 38,000 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 endured a turbulent year, reflecting the instability in northern Mozambique.
In June, the logistics chain was already temporarily suspended due to attacks by the rebels who have tormented Cabo Delgado for five years and are approaching the route through which the graffiti 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 aims to use graphite from the mine – described as one of the largest “quality” deposits in world. from the Australian company itself.
