Published: November 5, 2024 |

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Syrah Resources Limited said its subsidiary, Twigg Exploration and Mining has signed binding documentation with United States International Development Finance Corporation (DFC) for a loan facility of $150 million (A$227 million) to support the Balama Graphite Operation in Mozambique.

Execution of the DFC loan agreement follows a conditional loan commitment from DFC to Twigg in September 2023. An initial $73 million disbursement of the DFC loan to Twigg is expected to be completed in November 2024.

The DFC loan to Twigg will fund Balama capital requirements including:
• Working and sustaining capital in the operations of Balama
• Current and future expansion of Balama’s tailings storage facility
• Feasibility studies for the development of Balama’s vanadium resource

“This is a highly significant transaction that will support more diverse, resilient, and sustainable critical mineral supply chains and bolster investment in Africa. DFC’s loan demonstrates the commitment of the United States to support the transition to clean energy technology, grow economic opportunity, and uphold high labor and environmental standards,” said DFC Acting Vice President of Infrastructure Danielle Montgomery.

“The execution of a binding loan agreement with DFC for Twigg further demonstrates the importance of Balama, which is the largest integrated graphite mining and processing operation globally, to the critical minerals strategy of the U.S. Together with the U.S. Department of Energy loan for Syrah’s downstream business, the DFC loan positions Syrah as a strategic partner in bolstering supply chain security for critical minerals required for the electric vehicle and energy transition in the U.S.,” said Syrah Managing Director and CEO Shaun Verner.

“The DFC loan will provide Twigg capital to preserve optionality with respect to Balama’s operating strategy and for the orderly transition to a more sustainable level of capacity utilisation, supported by a more diverse customer base,” added Verner.

“We are pleased to have finalized this loan agreement with DFC after extensive due diligence and negotiation of terms and conditions. The DFC loan further diversifies Syrah’s sources of funding and provides non-dilutive funding to support Balama operations. Syrah and DFC are focused on completing the initial loan disbursement to Twigg as required for Balama,” said Syrah Chief Financial Officer Stephen Wells.

The DFC loan to Twigg is aligned with DFC’s commitment to foster trade and investment deals and partnerships between the U.S. and Africa. As Balama is a critical piece of the supply chain development for the global energy transition, the DFC loan also supports the first priority pillar of the G7’s Partnership for Global Infrastructure and Investment.

Execution of the DFC loan agreement follows a three-year process, which included detailed market, technical, legal, environmental, and social due diligence on Balama, Twigg, and Syrah in addition to extensive negotiation of loan documentation. Syrah first applied to DFC for loan funding for Balama in May 2021 and due diligence by DFC commenced in September 2021. The DFC loan has been approved by the Syrah and Twigg Boards, DFC and Mozambique Government entities.

Syrah Resources is an industrial minerals and technology company with its flagship Balama Graphite Operation in Mozambique and a downstream Active Anode Material Facility in the United States. Syrah’s vision is to be the world’s leading supplier of superior quality graphite and anode material products, working closely with customers and the supply chain to add value in battery and industrial markets.

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