The Australian mining company Syrah Resources on 27 April announced that in the first quarter of 2022 it increased both the production and sales of graphite from its mine in Balama district, in the northern Mozambican province of Cabo Delgado.
According to the company's quarterly report, it produced 46kt of natural graphite with 35kt sold and shipped. This was possible due to the opening up of a new shipping route through the port of Pemba, augmenting the route via Nacala. Syrah revealed that its first shipment from Pemba arrived in China in March with another two breakbulk shipments from Pemba scheduled in the third quarter of the year.
The company's operations are becoming even more profitable, with graphite being produced (free on board, FOB) at a cost of US$464 per tonne, compared with average prices running at US$573 per tonne.
During the first quarter of the year, 451 people were employed at Balama, not including contractors. The workforce is 96 per cent Mozambican, 37 per cent from the local community, and 18 per cent women.
Syrah also revealed that it has significant sales in its order book. It puts this down to strong growth in the Chinese and global electric vehicle market.
The Balama open cast mine covers 106 square kilometres and is reported to hold the largest graphite reserves ever discovered.
Graphite is a highly valued form of carbon due to its properties as a conductor of electricity. It is used in batteries and fuel cells and is the basis for the "miracle material" graphene.
