Syrah Resources is to restart production at its Balama Graphite Operation in Mozambique.
Production was temporarily suspended at Balama in March 2020 due to impacts of COVID-19, specifically: travel restrictions, limiting the mobility of the Balama workforce; and, weak end user demand due to lockdowns, mobility restrictions and economic uncertainty negatively impacting electric vehicle sales.
In July 2020 Syrah announced a labour restructure at Balama and other actions to preserve cash during the period of suspended production, whilst also retaining operating and marketing capability to restart production.
Syrah is able to manage within current travel restrictions, and market conditions are deemed supportive of recommencing production. Syrah will now progress the recruitment of labour required to restart operations at Balama, with first production expected within 2 to 3 months.