Syrah receives approval for Balama graphite project mining

28 September 2018 (Last Updated June 18th, 2020 09:55)

Syrah Resources has received approval for a mining agreement covering the Balama graphite operation from the Administrative Court in Mozambique.

Syrah Resources has received approval for a mining agreement covering the Balama graphite operation from the Administrative Court in Mozambique.

The company noted that court will formally issue a certificate once the relevant fee is paid.

The sanctioning of the mining agreement represents the completion of all necessary steps for it to be binding and enforceable.

According to Syrah, the mining agreement consolidates all prior project documents and approvals, while also providing clarity regarding governing laws, mining rights and other obligations for the Balama operation, including mining and tax laws.

Syrah Resources managing director and CEO Shaun Verner said: “The finalisation of the Mining Agreement represents another significant milestone for the company and reaffirms the Government of Mozambique’s commitment to the long-term success of the Balama operation.

“Balama has been operating since commencement in accordance with the agreed terms and our stakeholders can be even more confident that the company will be able to conduct its operations under a stable legal, fiscal and operating regime, which underpins Syrah’s position as the world’s premier producer of high quality graphite now, and into the future.”

“Our stakeholders can be even more confident that the company will be able to conduct its operations.”

Syrah achieved first production of natural flake graphite at the project in November last year and began shipping to global battery anode producers earlier this year.

The company is also engaged in the development of a downstream battery anode material plant in Louisiana, US.

Under the terms of the mining agreement, the company has the right to mine both graphite and vanadium until 2038.