Syrah turning Balama's lights back on

After confirming in January that it was eyeing the potential reopening of the Balama graphite mine in Mozambique, Syrah Resources has now decided it will restart mining within the next two to three months.
Syrah turning Balama's lights back on Syrah turning Balama's lights back on Syrah turning Balama's lights back on Syrah turning Balama's lights back on Syrah turning Balama's lights back on

Syrah's Balama will soon reopen after being idle since March 2020

Balama, located in the Cabo Delgado province, had been on pause since March 2020 due to the coronavirus pandemic, particularly the limitations of travel and economic uncertainty tied to the sales of electric vehicles.

Last July, Balama underwent a labour restructuring to retain its cash during the stoppage.

In late January, within the release of its December quarter earnings, Syrah said it was considering reopening because of updated travel guidelines and an improved market for graphite.

"Syrah is able to manage within current travel restrictions, and market conditions are deemed supportive of recommencing production," the miner said.

"[We] will now progress the recruitment of labour required to restart operations at Balama, with first production expected within two to three months."

Balama, which the owner calls its flagship asset, has a life of mine of about 50 years.