Australia-based mining company Syrah Resources Limited has confirmed the signing of a $150 million binding financing agreement with the U.S. International Development Finance Corporation (IDFC) to strengthen its Balama graphite project in Mozambique , operated by its subsidiary Twigg Exploration and Mining. This support will enable Syrah to expand its tailings storage facilities, cover working capital and explore vanadium resource potential in the region.
Graphite project receives DFC funding in two tranches
The loan, approved after three years of intensive due diligence and negotiations, will be disbursed in two tranches: the first of $100 million will be used for working capital and immediate expansion of the tailings infrastructure, while the second of $50 million will support future expansion of the same storage.
With an interest rate of around 4.61% and a maturity period extending to 2037, DFC’s financing reflects the U.S. commitment to developing resilient and sustainable supply chains for minerals essential to the energy transition .
Balama secures critical supply of graphite
Danielle Montgomery, Acting Vice President of Infrastructure at DFC, noted the importance of this transaction in diversifying supply chains for critical minerals and increasing investments in Africa. In turn, Shaun Verner, Director of Syrah, highlighted that the financing underlines the relevance of Balama in the US strategy to secure the supply of graphite , an essential component in the production of batteries for electric vehicles.
With estimated reserves of 110 million tonnes of graphite ore , Balama is positioned as the largest integrated graphite mining and processing operation in the world, with an annual production of approximately 350,000 tonnes.
This project, supported by the DFC loan, is consolidated as a strategic piece for global energy infrastructure, aligning with the objectives of the G7 Global Infrastructure and Investment Partnership, which promotes cooperation between the US and Africa in key sectors.
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Source: SYRAH RESOURCES
Photo: Shutterstock
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