Under the agreement, Syrah’s subsidiary Twigg will receive an US$8.5 million disbursement from its existing DFC loan. This funding will be used for working and sustaining capital at Balama.
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. Following this payment, the outstanding balance on the DFC loan will total US$68 million, excluding origination costs.
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.
Syrah Managing Director and CEO, Shaun Verner, said:“We are pleased to be continuing our long-term partnership with DFC through the execution of this Agreement. Balama is the largest integrated graphite mining and processing operation globally and is strategically important for supply chain security and the critical mineral supply required for the electric vehicle and energy transition in the US. Syrah is focused on delivering Balama production and natural graphite sales safely to improve cashflow and strengthen ex-China supply resilience with a focus on our stakeholders’ objectives”.
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.
Source: Club Of Mozambique
