Maputo — The Australian mining company Syrah Resources on Thursday invoked "force majeure' to suspend its graphite mining operations, in Balama district, in the northern Mozambican province of Cabo Delgado, as a result of the worsening unrest resulting from anti-government demonstrations called by presidential candidate Venâncio Mondlane in protest against the allegedly fraudulent elections held on 9 October.
According to a company statement, cited by the Portuguese News Agency Lusa, the demonstrations had already forced the company to restrict its activities.
"With conditions continuing to deteriorate in Mozambique and new protest actions by the opposition to the government announced recently, Syrah is unable to carry out a production campaign in Balama in the December quarter of 2024, which is necessary to replenish the inventory of finished products and for sales to customers. Consequently, force majeure is declared under the terms of the mining agreement', reads the document.
This follows the warning sounded on Tuesday by Agostinho Vuma, the chairperson of the Confederation of Mozambican Business Associations (CTA). He said the CTA had warned President Filipe Nyusi that some of the multinationals working in Mozambique were on the verge of declaring "force majeure' - which would release them from many contractual obligations.
Vuma put the losses suffered by private business from Mondlane's strikes, demonstrations and riots at 24.8 billion meticais (around 388 million US dollars).
The most serious impacts so far, he said, have been on the tourist industry, restaurants and other services. The festive season should be a boom period for Mozambican tourism - but this year foreign tourists are shunning Mozambique, and most hotel reservations have been cancelled.
Unrest spread on Monday to one of the jewels in Mozambique's conservation crown, the Chimanimani National Park, in the central province of Manica. Dozens of rioters invaded the park and smashed up tourist camps.
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This violence had nothing to do with Mondlane's claims about the elections. It was led by illegal gold miners who claim they are not benefitting from the National Park. Claims are made that members of President Filipe Nyusi's family are benefitting from mining in the park, but no evidence has been presented to support this.
The Park has now closed to visitors, but officials told reporters they hoped to reopen in April 2025.
