PERTH (miningweekly.com) – Graphite miner Syrah Resources has reported a solid quarter of production at its Balama operation, in Mozambique, during the three months to June.

Balama produced 44 000 t of graphite during the quarter under review, down slightly from the 46 000 t produced in the March quarter.

The ASX-listed company told shareholders on Tuesday that the plant recovery at Balama had reached 79%, which was an improvement on the March quarter and materially higher than when Balama was operating at an equivalent monthly production rate in 2019.

The company on Thursday said that during the quarter under review, strong forward demand for the company’s product continued, with demand consistent with the strong growth in global electric vehicle demand.

During the quarter, Syrah completed two nearly 10 000 t spot breakbulk shipments through Pemba port. The company is planning further breakbulk shipments in the September 2022 quarter and will continue to use this export route for Balama products whilst the container shipping market is disrupted.

The company noted that breakbulk shipments from Pemba create an additional export route for Balama products, provide flexibility in managing inventory positions and will enable significantly higher product sales than otherwise could be achieved solely through Nacala port, given prevailing container availability constraints.

Meanwhile, Syrah reported that construction of the Vidalia Initial Expansion project, in the US, is progressing within the planned schedule and budget.

The company in February took a final investment decision on the $176-million initial expansion of the Vidalia active anode material (AAM) facility to a 11 250 t/y production capacity.

The key construction activities undertaken during the quarter were piling, fencing and installation of infrastructure in readiness for contractors’ workforce, and these activities are proceeding on schedule.

All overseas fabrication of major equipment is tracking as expected and delivery of this equipment remains on schedule. Significant contracts for mechanical and electrical and instrumentation work packages will be awarded in the September 2022 quarter and other construction contracts will be awarded to maintain the critical path schedule.

Construction activities in the September 2022 quarter will focus on completion of civil foundations, mechanical, structural steel and piping manufacturing, and preparing for delivery and installation of major equipment.

Construction of the 11 250 t/y Vidalia facility is expected to be completed in the June 2023 quarter and, following commissioning, start of production is targeted in the September 2023 quarter with an 18-month ramp-up period to the full estimated 11 250/ty AAM production rate.