Australian mining company Syrah Resources has announced that it has secured financing of 64.73 million dollars to boost operations at the graphite mine located in Balama, Cabo Delgado province.
The funding was obtained through the placement of a rights offering to also finance the Vidalia project, based in the United States of America (USA). Australia’s largest shareholder and main pension fund, AustralianSuper, agreed to convert bonds issued in June 2019 and December 2023 into new shares in the mining company.
In September last year, Syrah revealed that it plans to receive US funding of 150 million dollars for its subsidiary Twigg Exploration & Mining, which operates the Balama graphite mine.
The conclusion of the 13-year financing operation, through the DFC, the US government’s financing and development agency, will make it possible to fund the capital requirements of the local graphite operations, one of the world’s largest reserves of this raw material, used in electric car batteries. It will also enable feasibility studies for the development of Balama’s vanadium resource and the current and future expansion of the storage facility, as well as sustaining Balama’s operations.
The loan proposed by DFC is in line with the commitment to promote trade and investment agreements and partnerships between the US and Africa, and also aims to ensure the implementation of supply chains in Mozambique, finance investments in the company’s graphite mining and processing operation in Balama, and increase production and diversify the global supply chain of graphite, which is a critical mineral for a range of clean energy and advanced technology products.
This investment will also lead to job creation and investment in local infrastructure, while ensuring high environmental and social standards essential for responsible mining, as highlighted in the US government’s statement at the recent 2023 G20 Summit in New Delhi, India.
