Syrah receives first $53m disbursement from DFC loan

Australia-listed Syrah Resources has announced that its subsidiary, Twigg Exploration and Mining, has received the first disbursement of $53-million from its loan agreement with the US International Development Finance Corporation (DFC) to support the development of the Balama graphite operation in Mozambique.

The loan proceeds will be allocated for working capital, sustaining operations, and funding the expansion of the Balama tailings storage facility (TSF), as well as covering associated loan transaction costs. The disbursement is part of a broader $100-million loan package, with an additional $47-million committed and available to Twigg up until October 2027. These funds will support ongoing operational needs, the TSF expansion, and the development of vanadium resources at the site.

In addition, Syrah reported that widespread post-election protests in Mozambique had impacted the responsiveness of authorities to resolving illegal action at Balama.

The protests at Balama stem from grievances related to historical farmland resettlement, and are said to hinder movement of people, interrupting site access and currently preventing the start of the next production campaign.

Balama is operating on a campaign mode basis, and may temporarily halt production due to maintenance, inventory positions, and other planned or unplanned factors. Syrah will require a campaign in the December quarter to replenish inventories.