Mining firm defaults on US loans amid Mozambique political unrest

By Hannah Northey | 12/12/2024 04:15 PM EST

Syrah Resources said ongoing protests have forced a default on loans worth up to about $250 million.

Protesters fill the street as police deploy in Maputo, Mozambique, Thursday, Nov. 7, 2024. Protesters dispute the outcome of the Oct. 9 elections, which saw the ruling Frelimo party extend its 49-year rule. (AP Photo/Carlos Uqueio)

Protesters fill the street Nov. 7 as police deploy in Maputo, Mozambique. Protesters disputed the outcome of the Oct. 9 elections, which saw the ruling Frelimo party extend its 49-year rule. Carlos Uqueio/AP

This story was updated at 6:12 p.m. EST.

Political unrest and protests have forced a U.S.-backed graphite producer in Mozambique to declare force majeure and default on its federally backed loans.

Syrah Resources, an Australian minerals company, revealed in a press release Thursday that civil unrest and protests across the region are affecting the company’s Balama graphite mine in Mozambique’s Cabo Delgado province.

The severity and duration of those protests, said Syrah, have “triggered events of default” in loans the company received from the International Development Finance Corp. and Energy Department. Agencies like the DOE build in safeguards and milestones that companies must meet to comply with the loan guarantee program and it’s not clear how the default will impact Syrah’s ability to repay the loans.

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