Australia's Syrah To Reduce Second-Quarter Manganese Ore Production in Mozambique

Sydney, July 23rd (Argus) - Australian graphite producer Syrah Resources reduced its natural graphite output at the Balama mine in Mozambique during the April to June period, as demand was weak during the quarter and diesel costs were higher than usual.
Syrah Company stated on July 23rd that due to weak demand for natural graphite outside of China, and a 50% increase in diesel prices in Mozambique during this quarter in the context of the US-Iraq war, Syrah Company has cut its production by 65% this year to 2,000 tons. The output for this quarter also dropped by 90%.
The company stated that its output from April to June was the remaining output from the previous quarter, and the next round of production was postponed to the July to September quarter. The mine has the ability to rapidly expand production capacity to meet new demands.
The company stated that Syrah conducted planned maintenance during this quarter, which will ensure reliable production throughout the remainder of this year.
The company's sales increased by 983% year-on-year to 7,000 tons, as the company utilized existing inventory to serve sales. Last year, due to internal unrest at the Balama mine, sales were particularly low, and the mine was suspended for six months until May 2025.
Mozambique's policy uncertainty
The Mozambican parliament officially enacted a new mining law in early June.
Syrah said that this will increase the government's mandatory participation in mining projects from 5% to 15% and introduce stricter regulations for domestic value-added and domestic processing, but the implementation of these changes and their impact on the Balama mine and downstream refining activities remain unclear.
The government currently holds a 5% stake in the Balama mine through Twigg Exploration and Mining.
Syrah produced 150 tons of active anode material (AAM) at its 11,250-ton-per-year Vidalia facility for testing and quality verification.
The company has signed an 8,000-ton-per-year purchase agreement with the US automaker Tesla, covering 70% of the Vidalia output.
The company will start selling AAM from Vidalia at the end of this year, awaiting customer evaluation. It plans to expand the facility to 45,000 tons per year, but has not outlined a financing schedule.