DFC Opens Pathway to Secure Strategic Equity Interest in Syrah, Owner of the Balama Graphite Mine and Vidalia Anode Plant, to Advance U.S. Critical Mineral Priorities

WASHINGTON, D.C. - The U.S. International Development Finance Corporation (DFC) today announced its strategic investment plan in AustralianSuper-backed Syrah Resources Limited (Syrah) - the parent company of the Vidalia Active Anode Material (AAM) processing facility and Balama graphite mine in Mozambique, which hosts one of the largest natural graphite reserves in the world.

DFC has proposed a creative liability management structure that would initially convert a portion of its existing loan to Balama into common equity in Syrah, with the remaining balance of the DFC Loan rolling into a convertible loan note (CLN) to be issued by Syrah. Additionally, DFC is contributing a new-money investment, which will provide immediate liquidity for operations at the Balama mine and is expected to mobilize over 5x that amount from private investors to support Syrah's operations. As part of the proposed transaction, DFC would also receive warrants to acquire additional equity in Syrah and would retain the option to provide additional CLN financing to cover contingent expenses at Balama.

The proposed creative liability management transaction would represent the first time DFC has received a CLN issued by a publicly listed company and would provide DFC with a pathway to convert all of its outstanding debt to equity in Syrah, the owner of the strategically significant Balama graphite mine and the Vidalia processing facility in the United States.

"In today's era of global competition, economic security is national security," said DFC CEO Ben Black. "With this transaction, we will secure U.S. access to one of the largest graphite reserves in the world, supply jobs for the U.S. and our allies, and support a valuable hub of economic activity for the people of Mozambique."

"AustralianSuper is a long-term active investor and we made initial investments in the critical minerals sector, including Syrah, in 2015. The critical minerals supply chain is a highly attractive long-term investment theme, and we're pleased that Syrah has received proposals from AustralianSuper, DFC and the US Department of Energy with the intention of setting the company up for future success," said AustralianSuper Senior Portfolio Manager Luke Smith.

This proposed transaction would provide additional liquidity, simplify Syrah's capital structure, and help position the company for long-term success. It would also provide a pathway for DFC to become a long-term equity partner in Syrah, demonstrating DFC's focus on securing critical minerals and integrated supply chains for the United States and its allies.

The Balama mine is a critical supplier of natural graphite to the United States and allied nations. This includes supply for Syrah's downstream natural graphite AAM facility in Vidalia, Louisiana, the first of its kind in the United States. Using natural graphite from Balama, this downstream facility aims to produce high-performance graphite anode materials that will be used in lithium-ion batteries across various industries. Balama is also expected to support the development of graphite and critical mineral processing capabilities in the United States and among U.S. allies, such as Australia, Japan, and South Korea.

This announcement builds on DFC's commitment to partner with key U.S. allies to advance shared priorities as outlined in the U.S.-Australia Critical Minerals Framework Agreement signed by President Trump and Australian Prime Minister Anthony Albanese.

Strengthening U.S. access to critical minerals supply chains remains a core focus of DFC's investment strategy and portfolio. A diverse supply chain of critical minerals is essential to developing and powering modern industries, such as advanced technology and energy, that will secure U.S. growth and national security in the future.

Today's announcement follows DFC's recently expanded authorities granted by Congress, which lifted geographic limitations in strategic sectors, increased the agency's investment cap to $205 billion, strengthened DFC's equity authorities and established a revolving equity fund. These enhancements strengthen DFC's position as the premier instrument of U.S. economic statecraft in support of the administration's foreign policy agenda.

DFC's non-binding strategic funding proposal for Syrah and its subsidiaries is subject to satisfactory completion of due diligence, negotiation of financing documentation, and receipt of internal, applicable governmental and Syrah approvals.

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The U.S. International Development Finance Corporation (DFC), established in 2019 with bipartisan support under President Trump, is the international investment arm of the U.S. Government. DFC partners with the private sector to advance U.S. foreign policy and strengthen national security by mobilizing private capital around the world. DFC invests across strategic sectors including critical minerals, modern infrastructure, and advanced technology - fostering economic development, supporting U.S. interests, and delivering returns to American taxpayers.