• Syrah secures $8.5M from DFC to support Mozambique graphite mine
  

• Balama mine runs below capacity due to graphite oversupply, low prices
  

• Total DFC funding reaches $68M; further disbursements under discussion
  

Syrah Resources Ltd. announced on Monday that it has secured an additional 8.5 million dollars disbursement under its loan facility with the U.S. International Development Finance Corporation (DFC).

The funds, expected by Thursday, November 20, will mainly be used to cover working capital requirements and support operations at the company’s Balama graphite mine in Mozambique.

Syrah first agreed to a 150 million dollar loan facility with the DFC for Balama in October 2024. An initial 53 million dollars was released at that time. Further disbursements were delayed after operations at the mine were temporarily suspended in December 2024.

Production and graphite exports resumed in June. Syrah received a second payment of 6.5 million dollars in August, and the newly announced 8.5 million dollars brings the total amount received from the DFC to 68 million dollars.

Production Constraints Amid Market Oversupply

The financing supports mining activities at Balama, but the site is currently operating on a campaign basis, running at a significantly reduced rate compared with its full capacity. The company adopted this schedule because the graphite market is facing oversupply and declining prices.

Balama, the largest graphite mine in Africa, has a production capacity of 350,000 tonnes per year. Output reached only 26,000 tonnes in the third quarter, according to Syrah Resources' activity report. The company has not indicated how long it plans to maintain this reduced operating schedule.

Syrah said that new discussions with the DFC are planned regarding the timing of upcoming disbursements under the overall loan agreement.

Aurel Sèdjro Houenou