Syrah Resources' subsidiary gains approval for Balama project, Mozambique
Syrah Resources' wholly owned subsidiary Twigg Exploration and Mining has received approval from the Mozambique Government for Balama graphite project in the country's Cabo Delgado province.
Approval is related to a mining agreement, which has been finalised with the Mozambique Ministry of Mineral Resources and Energy.
The agreement is expected to consolidate all previously obtained project documents and approvals.
In addition, it enables mining rights and other obligations for the Balama project and is in accordance with Mozambique laws.
Syrah Resources managing director and CEO Shaun Verner said: "The approval of the mining agreement by the Government of Mozambique represents a significant milestone for the company and reaffirms Mozambique’s commitment to the long-term sustainability, stability, and success of the Balama project."
Located 200km west of the port town of Pemba, the mine is expected to produce around 355,000t during the first ten years of production.
It is estimated that Twigg will sign the agreement with the country's minister of Mineral Resources and Energy in the coming weeks.
In order to become binding and enforceable, the agreement needs to be approved by the administrative court in Mozambique.
Syrah indicated that the starting of production at Balama project is not dependent on the mining agreement. Commissioning activities at the project started in May this year, with construction works close to completion.
The company intends to supply production from the project to industrial graphite markets and technology markets.