Mozambique’s mining sector has received a significant boost with the restart of operations at the Balama graphite mine, one of the world’s largest graphite deposits, following a prolonged shutdown.
The mine, operated by Australian firm Syrah Resources, resumed activities on June 19, 2025, after nearly a year-long pause prompted by falling graphite prices and community unrest.
Located in the resource-rich province of Cabo Delgado, the Balama mine has an annual production capacity of 350,000 tonnes of graphite — a mineral critical for the manufacturing of lithium-ion batteries, which power electric vehicles and renewable energy storage systems.
The restart of production comes at a crucial moment, as global demand for graphite continues to soar in the wake of accelerating energy transitions and decarbonization efforts.
Syrah Resources, in a statement, confirmed that operations at the site are being resumed in stages.
The company has already initiated restoration of key facilities and recalled part of its workforce to reinitiate production lines.
“The objective is to accumulate sufficient stockpiles before ramping up full-scale exports,” the company said, underscoring a cautious yet optimistic approach to re-entering global markets.
The mine had halted operations in July 2024 due to plummeting prices and tensions with nearby communities, which escalated into roadblocks that restricted site access.
The disruption exposed the fragile balance between industrial ambitions and local realities — a dynamic the company now seems keen to manage more effectively.
Beyond its industrial significance, the Balama mine represents a vital economic asset for Mozambique.
It contributes to export revenues, local employment, and the development of technical expertise in rural areas.
The successful relaunch could also serve as a model for reconciling extractive operations with community interests.
Analysts say that sustained dialogue with local stakeholders will be crucial to ensuring long-term operational stability.
“The 2024 blockade was a wake-up call,” said a mining sector observer. “A social license to operate is just as important as the mining license.”
As competition intensifies for the raw materials that underpin green technologies, Mozambique’s strategic graphite reserves position it as a pivotal player in the evolving global supply chain.
The Balama mine’s comeback is not only a symbol of industrial resilience but a potential game-changer in Africa’s contribution to the clean energy future.
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