Satellite data analysis shows copper smelting activity surged in November
Global copper smelting last month reached its highest level since February.
Shares in Syrah Resources Ltd. plunged after the Australian miner declared force majeure for its Balama graphite mine in Mozambique due to ongoing civil unrest, causing it to default on US government-backed loans.
The stock fell as much as 32% and was down 27% to 19.25 Australian cents (12.34 cents) as of 12:29 p.m. Sydney time. In November 2022 they traded at around A$2.62 apiece.
Mozambique has been rocked by protests against a disputed election since early October. At least 100 fatalities have been reported, most of them demonstrators shot during clashes with police. Hundreds more people have been injured and thousands arrested.
“The impacts and duration of the protest actions have triggered events of default in the company’s loans with United States International Development Finance Corp. and US Department of Energy,” Syrah said in a filing Thursday.
Syrah Resources received a $150 million binding loan with US International Development Finance Corp. to provide long-term capital support for Balama, it said in a statement in October. It also received about $98 million through the US Department of Energy to build a downstream processing facility in the US.
Transport to the Balama mine, which supplies graphite — an important component in batteries for electric vehicles — and operation of a processing plant continued to be interrupted, Syrah said Thursday. Workers had been sent home and security contractors were on site, it added.
“Sustained efforts by the company to achieve a positive resolution of protest actions through lawful and constructive dialog with Mozambique government authorities, host community leaders and protesters, and the pursuit of legal avenues, have been unsuccessful to date,” Syrah said.
Earlier this week, Perth-based South32 Ltd. withdrew its guidance for its aluminum smelter in Mozambique, saying transport of its raw materials had been interrupted.
Syrah’s biggest shareholder is major pension fund AustralianSuper Pty Ltd., which holds a 32% stake.
(By Paul-Alain Hunt)
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