Syrah Resources has initiated restart procedures at its strategically significant Balama graphite operation in Mozambique, marking a potential turning point for global natural graphite supply chains following months of disruption.
The Australian-listed firm announced Friday that maintenance and inspection teams have returned to the site, initiating a sequential restart process that prioritizes power restoration and security infrastructure. The company projects natural graphite production will resume before the end of June 2025, with commercial shipments to follow shortly thereafter.
Balama’s operational hiatus began in December 2024 when Syrah declared force majeure amid widespread civil unrest following contested general elections in Mozambique. The facility, which accounts for approximately 12% of global natural graphite production capacity, has remained offline for nearly six months—an extended outage that has rippled through battery supply chains globally. 
Initial inspections have revealed no significant damage to the processing plant, Ativa mine pit, or tailings facilities, though minor maintenance requirements have been identified. The company has outlined a phased approach to restarting operations, beginning with crushing and proceeding through flotation, milling, and product packaging systems in coming weeks.
Syrah holds approximately 400,000 tonnes of stockpiled run-of-mine ore, sufficient to sustain at least three months of processing operations without immediate mining activity. This stockpile provides operational flexibility during the initial restart phase, though mining operations will resume “in due course,” according to company statements.
The restart comes amid complex financial arrangements with U.S. government institutions. Syrah disclosed ongoing discussions with the U.S. International Development Finance Corporation (DFC) regarding events of default triggered by the operational disruption. The DFC has demonstrated flexibility, deferring the first semi-annual interest payment due in mid-May on its $150 million loan facility—a move analysts interpret as Washington’s strategic interest in supporting non-Chinese graphite supply.
Mozambique’s political environment remains a key risk factor for Balama’s sustained operations. Syrah emphasized ongoing engagement with national and provincial authorities to ensure the free movement of goods and personnel as guaranteed under the Balama Mining Agreement. These discussions take place against a backdrop of still-fragile political reconciliation following last year’s disputed election.
Graphite markets have experienced substantial volatility during Balama’s offline period. According to Benchmark Mineral Intelligence data, natural graphite prices for battery applications increased approximately 18% between December 2024 and April 2025, though prices have moderated in May as expectations of Balama’s return solidified.
Balama’s restart carries significant implications beyond Syrah’s commercial interests. The operation serves as a critical test case for resource development in Mozambique’s northern provinces, where security concerns have historically challenged investment. Successful resumption could signal improved operating conditions for the broader extractive sector in the region, particularly as global firms seek to diversify critical mineral supply chains away from Chinese dominance.
