Shaun Verner

CEO & MANAGING DIRECTOR, SYRAH RESOURCES LTD.

What is the full potential of the Balama mines?

Our goal is to become the leading producer of graphite in the world. Balama is the largest high-quality resource of natural graphite in the world, with a full capacity utilization of 350,000 tons. The investment premise for Balama lies around the decarbonization of the global economy and emissions reduction. Graphite is one of the main components of electric vehicles’ (EV) batteries. It is not as well-known as lithium, cobalt, aluminum, or manganese, but it is extremely important and fairly stable in the composition of lithium-ion batteries. We have an ore grade at Balama of 16%, compared to a global average below 10%. We have a low strip ratio and low cost at full capacity utilization of the plant of 350,000 tons per year. Driven by EV adoption, we expect natural graphite demand to grow significantly. We believe this demand growth will support the ramp-up of Balama to its full design production capacity and potentially even future expansion.

Mining is often quoted as one of the main contributors to development in Cabo Delgado, juxtaposed against LNG megaprojects. In what terms would you contextualize this contribution?

Comparing graphite mining and the LNG industry is a bit farstretched because of the nature of the projects. When we first started, the USD220-million Balama graphite project investment was relatively large and successful in a short timespan. We were able to create a positive relationship with the government and local communities and take the project from discovery to production in just five years, abiding by the highest corporate and social standards. 96% of our employees are Mozambican, with 50% being from the eight local host communities. This project opened the doors for further large investments in the region, acting as a marker for how to create a positive relationship between the resource industry, the government, and local communities.