What Caused the Temporary Closure of Balama Graphite Operation?
The sudden halt of operations at Syrah Resources’ Balama graphite mine in Mozambique stemmed from a complex intersection of political instability and community grievances that escalated in late 2024.
Political Unrest and Community Disruptions
Nationwide protests erupted following Mozambique’s contentious federal election in late 2024, creating widespread civil unrest. This political instability quickly affected various mining operations throughout the country, with Balama becoming a focal point for local demonstrations.
A small but determined group of farmers with historical land resettlement grievances began targeting the mine site specifically in September 2024. These protests intensified through the autumn months, eventually forcing Twigg Exploration and Mining (Syrah’s Mozambican subsidiary) to declare force majeure in December 2024.
According to Syrah’s official statement, “The combination of election-related civil disruptions and focused community protests made safe operations impossible, necessitating a complete temporary shutdown of activities” (SmallCaps, May 15, 2025).
The situation created an unprecedented eight-month disruption at what had been one of Africa’s most productive graphite operations.
Impact on Global Graphite Supply Chain
The closure sent significant ripples through global supply chains, particularly affecting markets outside China. As industry analysts at Benchmark Mineral Intelligence noted, “Balama represented approximately 15% of global natural graphite production capacity, but more critically, nearly 40% of non-Chinese supply” (Benchmark Mineral Intelligence, Q1 2025 Report).
This disruption created substantial latent customer demand during the closure period, especially among battery manufacturers seeking to diversify their energy transition supply chains away from Chinese dominance. While some customers were able to secure alternative sources, many faced challenges in maintaining consistent supply of high-grade natural graphite.
The U.S. Geological Survey highlighted that “the temporary removal of Balama’s output from global markets demonstrated the vulnerability of critical mineral supply chains to geopolitical and social disruptions” (USGS Critical Minerals Quarterly, Q1 2025).
How Is Syrah Implementing the Balama Restart?
Following the resolution of the most significant community tensions and restoration of site access in May 2025, Syrah has begun implementing a methodical restart strategy for the operation.
Systematic Remobilization Process
The company initiated its recovery plan with the careful remobilization of essential maintenance and inspection teams to assess the site’s condition after months of inactivity. This initial phase focused on evaluating critical infrastructure and developing a comprehensive restart timeline.
As site assessment progressed, Syrah began redeploying camp services, mining contractors, and equipment providers according to a phased schedule. This gradual approach allowed for thorough inspection and preparation before committing to full operational restart.
“Our primary focus has been ensuring the integrity of all site assets while carefully managing the remobilization process to maintain community and stakeholder support,” stated Syrah Resources in their May 2025 operational update.
Technical Restart Considerations
Following comprehensive inspections, Syrah reported no significant issues with the Ativa mine site or processing plant despite the extended shutdown. Engineering teams confirmed that the tailings storage facility and associated infrastructure remained in good condition, requiring only standard maintenance.
Inspections identified only minor maintenance requirements for the sequential restart of processing sections, allowing for a more efficient return to production than initially anticipated. The company’s technical teams developed a series of progressive system checks and restarts to ensure safe resumption of operations.
The company plans to implement campaign-mode operations—a batch processing approach rather than continuous production—to maximize productivity and efficiency during the initial restart phase. This strategy allows more focused use of resources and helps manage cash flow during the ramp-up period.
Production Timeline and Logistics
Syrah has targeted the restart of natural graphite production during Q2 2025, with initial output expected by late June. The company’s logistics strategy prioritizes break-bulk shipments to shorten delivery timeframes compared to containerized options, which currently face longer lead times due to regional port congestion.
A significant advantage for the restart is Syrah’s existing run-of-mine inventory of approximately 400,000 tonnes of graphite ore, which the company confirms is “sufficient to support at least three months of operations” (SmallCaps, May 15, 2025). This stockpile allows for immediate processing without waiting for new mining operations to resume.
This strategic approach aims to accelerate cash receipts through optimized shipping and inventory management, addressing the financial pressures created by the extended shutdown period.