The Balama graphite mine, one of the largest sources of natural graphite in the world, located in Cabo Delgado province, remains closed due to local protests intensified in the context of post-election tension in Mozambique.

According to a Engneering NewsThe mine, operated by Australia's Syrah Resources, has been inoperative for nine consecutive months, affected by blockades on access to the site and a lack of effective intervention by the authorities. The stoppage originated in demands from resettled farmers, but has spread to other areas of protest related to the country's unstable political environment.

The Syrah mining company says that although an agreement has been reached with the initial group of farmers, a small number of protesters continue to prevent access to the mine, without presenting legitimate claims. The company obtained a court injunction in March ordering the release of the site, but the implementation of the order by the district authorities remains uncertain.

Since suspending operations in mid-2024, the Balama mine has not produced a single ton of graphite. In the first quarter of 2025, Syrah sold just 1,300 tons of the product, a much lower volume than in previous periods.

The company declared force majeure under the Balama Mining Agreement in 2024, maintaining the status until the situation normalizes. In the meantime, the fixed costs of the operation stand at around three million dollars a month, even though temporary containment measures have been adopted.

In addition to the economic impact, the suspension of activity has compromised Syrah's social programs in the region. However, the company reiterates its commitment to sustainability practices and support for local communities.

The lack of a swift response from the Mozambican authorities, in a context of civil unrest and delays in the formation of a new government, has exacerbated uncertainty about the resumption of production at Balama. Syrah has so far not provided any forecast for the resumption of operations.

(Photo DR)