Syrah Resources raises funds to develop graphite project in Mozambique

17 June 2016

Australia’s Syrah Resources has raised 194 million Australian dollars by issuing 32 million new shares. The funds will be invested in the Balama mining project in Mozambique, the company said in a statement.

Director-general Tolga Kumova said that the cash raised would be used to develop the Balama project and would give the company a comparative advantage for exploring graphite deposits in the northern Mozambican province of Cabo Delgado.

The company also said it had updated the schedule of work for the Balama project and now expects to start producing graphite in the second half of 2017.

Syrah also said it would need an additional 175 million dollars to finance the mining project, compared to a previous estimate of 144 million dollars. The main change is the acquisition of a power plant rather than building, owning, operating and transferring as previously planned.

The company recently signed a contract with Japan’s Marubeni Corporation to supply 50,000 tons of coated and non-coated spherical graphite per year for customers in Japan and South Korea that manufacture batteries.

This contract, the value of which was not disclosed, is valid for five years and gives the Japanese group exclusive rights over Balama graphite in both those countries. (macauhub/MZ)