General Discussions, page-35499

The issue is robust supply from like-minded nations.

POSCO may change its tune if SYR's mining licence is revoke.

While it's difficult to say with certainty whether Syrah Resources (SYR) could lose its mining licence, the situation at its Balama mine in Mozambique suggests a significant risk. As we know, the mine was shut down due to widespread civil unrest and protests, forcing them to declare a force majeure event late last year. This has led to delays in production and potential defaults on US government loans which it still needs to be resolved.

Now that a restart and operations are in progress, SYR will sooner or later need to do a cap-rise. But who in the west is likely to buy into that when there is still the possibility of widespread civil unrest and protests that could make it impossible for them to operate safely in the short to medium term? Furthermore, the declaration of force majeure under the Mining Agreement with the Mozambique Government (such that it is) means that Syrah is unable to fulfill its obligations. While the company has been in discussions with the government about restarting operations, the ongoing unrest and potential defaults on loans raise concerns about the sustainability of the mining license.

China has also invested heavily in Mozambique through infrastructure projects, providing loans and even building government buildings and public facilities. These projects have not only boosted infrastructure but also increased China's cultural capital and presence in the country. As a result, China has maintained strong political and diplomatic ties, including frequent high-level meetings and consultations. It therefore exerts considerable influence through political and diplomatic channels.The situation is highly complex and the long term future of the Balama mine remains uncertain.

Multinationals need certainty. Where will POSCO, which has a contract with SYR and other African nations, go to obtain secure material should the unthinkable happen?

Given their political influence, don't discount the idea that China could strategically be leading international businesses and investors on in Africa to later pull the pin. Aferall, they are the inventors of the abstract strategy board game Go.

Everyone needs a back up option and RNU could be it.

All IMO, DYOR, GLTA(patient)H