LUSA 10/29/2025

Lusa - Business News - Mozambique: Cabo Delgado mine produced 26,000 t. graphite in Q3 after shutdown

Maputo, Oct. 28, 2025 (Lusa) - The Balama mine in north Mozambique produced 26,000 tonnes of graphite in the third quarter, after a six-month shutdown caused by social unrest, supplying the North American and Indonesian electric vehicle battery markets, it was announced on Tuesday.

According to information on third-quarter 2025 performance sent to the markets today by Australian mining company Syrah Resources, the mine in Cabo Delgado, northern Mozambique, also recorded a total of 24,000 tonnes of graphite sold and shipped to customers at an average price per tonne of US$625 (€536) in the same period.

The Balama mine resumed exports of natural graphite for electric car batteries after a six-day halt caused by social unrest, Syrah Resources announced on July 24, withdrawing the "force majeure" clause.

The term ‘force majeure’ is a legal concept that refers to external, unpredictable and unavoidable events that prevent the fulfilment of contractual obligations.

"With the resumption of normal operations at Balama and the logistics supporting product transport and shipment loading, the company’s Mozambican subsidiary, Twigg Exploration and Mining, has notified the Mozambican government that it has removed the "force majeure" declaration provided for in the Mining Contract," according to information sent to the markets by Syrah, which holds that concession.

Quoted in today’s information to the markets, Syrah’s chief executive, Shaun Verner, said that the mining company’s “operational highlights” in the third quarter “included the safe resumption of operations in Balama after the long period of inactivity and the completion of large-volume bulk shipments to Indonesia and the United States, in addition to new container shipments.”

"We hope to maintain the pace of production and shipments in the last quarter of 2025," adds Verner, further highlighting the company’s "successful" capital raising in July, putting it in a better position to "manage market volatility".

Syrah previously revealed that it only regained access to the Balama mine on May 5, with natural graphite production restarting on June 19, followed by “subsequent restocking and transport of the product from Balama to the ports of Pemba and Nacala”.

The mining company announced on December 12, 2024 that it had invoked "force majeure" due to the worsening of demonstrations and protests against the results of the general elections of October 9, 2024 - which caused a further 411 deaths, as well as the destruction of public and private equipment, mainly until March - which affected activity at the graphite mine in Balama.

The company previously explained that the suspension of activity was due to protests at the mine, which had affected operations until then, and that “the protests had ended and access to the site had been restored” after the intervention of the Mozambican authorities, who removed the last “illegal protesters”.

"Following a formal agreement between farmers, Mozambique government authorities and the company, most protesters stopped protesting in Balama in April 2025. A small group of people continued to block access to the site without legitimate reason or complaint against Syrah,” it previously reported.

According to Syrah, the initial dispute involved a "small group" of local farmers with unresolved "historical complaints about agricultural land resettlement."

The Australian firm is building Vidalia, in the United States, a factory for electric car battery materials, which will be supplied with Mozambican ore.

Globally, graphite production in Mozambique for electric car batteries fell 64% in 2024 to 34,899 tonnes, one of the lowest figures in recent years, according to government data reported by Lusa in February.

 

 

 

 

PVJ/AYLS // AYLS

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