A
fire has occurred at Syrah Resources’ Balama graphite operation, less than a
week since the project received approvals from the Mozambique Government. The
fire initiated in its processing equipment during hot work activities in piping
maintenance.
It
started below the primary classifier unit and affected its related pipe and
electrical cabling.
Syrah
Resources has confirmed that no structural damage was incurred beyond this
point.
While
the onsite emergency services team had quickly put out the fire, operations in
all other sections of the plant were halted according to company procedures.
There were no injuries due to the fire.
The
plant’s primary classifier was rendered inoperable, which incurred a total
repair cost, including a unit replacement, of $US500,000 ($704,000). The
equipment distributes and separates different milled material from the
scrubber.This will set production back at Balama to five weeks, with a
production loss estimated to be around 30 kilotonnes (kt) in the fourth quarter
of 2018.While minor impacts will only affect the company’s near-term sales
profile, production forecast for the fourth quarter has been cut down to
30-35kt, amounting to a reduced full-year production guidance of 101-106kt.
Mining, crushing and shipping activities will continue during this period.The
Balama project is in the Cabo Delgado province of northern Mozambique
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