Australia's Syrah Resources announced on Tuesday that it has secured a waiver for default events related to its $150 million loan from the United States International Development Finance Corporation (DFC). The waiver provides much-needed relief following significant operational disruptions at the company’s Balama graphite mine in Mozambique, caused by ongoing nationwide protests. These protests, which began in September 2024, have severely impacted the operating environment across the country.

The company halted operations at its flagship Balama mine in December 2024 following persistent disruptions caused by farmer-led protests. Despite the operational halt, Syrah emphasized that it has remained current on all loan payment obligations. The Melbourne-based miner previously received a $53 million tranche from the DFC loan in November 2024. This tranche is now available to support Balama’s working capital needs, ensuring the site’s essential financial requirements are met during the suspension. However, Syrah clarified that while the remaining loan balance is committed, additional disbursements from the DFC loan are currently unavailable due to the ongoing blockade of Balama’s operations by the protest actions.

“Operating conditions in Mozambique are challenging, with ongoing nationwide protests associated with the general elections causing widespread disruptions throughout the country,” the company said in a statement. The protests, tied to political tensions and local grievances, have created an uncertain environment, complicating Syrah’s efforts to resume operations and maintain its strategic objectives. The company added that it is closely collaborating with the DFC and the U.S. Department of Energy to address the default events and navigate the complexities created by the prolonged unrest.

Despite these challenges, Syrah remains committed to addressing the operational setbacks and ensuring the long-term viability of its Balama operation. The mine, a critical supplier of graphite used in lithium-ion batteries, plays a key role in global supply chains supporting electric vehicle production and energy storage solutions. As such, the company’s ability to manage these disruptions is crucial not only for its financial stability but also for its contribution to the rapidly growing battery materials market.

The nationwide protests in Mozambique highlight the risks and uncertainties faced by companies operating in politically and socially volatile regions. For Syrah, the situation underscores the importance of ongoing engagement with stakeholders, including local communities and international partners, to ensure a sustainable resolution.

In early trading on Tuesday, Syrah’s shares gained 2.3%, reaching A$0.22. The increase reflects cautious investor optimism about the company’s efforts to secure financial stability and manage operational risks despite the current challenges.