Syrah Resources has obtained a $53 million loan waiver from the DFC amid operational challenges at its Balama mine in Mozambique, where protests have limited access. The company has not defaulted on its loan obligations and is working towards resuming production, which was suspended since July due to sufficient inventory and low demand.
Syrah Resources, an Australian graphite producer, has successfully negotiated a $53 million loan waiver with the United States’ International Development Finance Corporation (DFC). This development follows the company’s declaration of a force majeure at its Balama mine in Mozambique due to protests that hindered access to the site. Although Syrah has encountered difficulties, it has maintained compliance with its payment obligations related to its existing $150 million DFC loan and a $102 million loan from the US Department of Energy.
The situation surrounding Syrah Resources is rooted in its operations at Balama, which has faced significant disruptions due to political controversies in Mozambique. On December 12, 2021, the company reported a force majeure as protests obstructed mine access. This unrest followed a contentious general election that reaffirmed the long-dominant Frelimo party’s position in government, leading to ongoing demonstrations that have affected operational conditions in the area.
In conclusion, Syrah Resources’ securing of a loan waiver from the DFC illustrates the company’s efforts to navigate challenging operational conditions at the Balama mine. Despite recent setbacks, including production halts and civil unrest, the firm remains poised to access additional funding contingent upon the resumption of graphite production. The evolving situation at Balama will require close monitoring as Syrah seeks to restore its operations and meet market demand.
Original Source: www.argusmedia.com
