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The Australian mining company Syrah Resources on Monday announced that it is to receive a loan of 150 million US dollars to fund the development of its Balama graphite project in Balama district, in the northern Mozambican province of Cabo Delgado.
The loan is to come from the United States International Development Finance Corporation (DFC), which is the development agency of the US federal government. It will be made to the company’s wholly-owned subsidiary, Twigg Exploration and Mining Ltd.
In a statement to the Australian Securities Exchange, the company notes that, if completed, the loan will cover some of the capital costs for the Balama project and is “aligned with the Biden – Harris Administration’s commitment to support development in Africa”.
Syrah points out that this will be the first time DFC has made a loan to a graphite project “demonstrating the importance of Balama to bolstering US supply chain security for the supply of critical minerals”.
A statement from the White House on Saturday pointed out that “this investment will increase production and diversify the global supply chain for graphite which is a critical mineral for a range of clean energy and advanced technology products”.
It added, “DFC’s support will also lead to job creation and investment in local infrastructure while ensuring high environmental and social standards that are essential for responsible mining”.
The funds will be used for the expansion of Balama’s tailings storage facility, working and sustaining capital for Balama’s operations, and feasibility studies for the development of Balama’s vanadium resource.