By Nqobile Dludla

CAPE TOWN, Feb 5 (Reuters) - Syrah Resources SYR.AX hopes to restart production at its Balama graphite project in Mozambique during the first quarter, which will ultimately lead to the lifting of force majeure, the Australian company's chief executive said on Wednesday.

The company declared force majeure in December due to disruptions from protests, exacerbated by civil unrest following Mozambique's election results in October, which also led the company to default on its U.S.-backed loans.

"The stability in the country is improving significantly. The last two or three weeks have certainly been much better than the period beforehand," Syrah Resources Managing Director and CEO Shaun Verner told Reuters on the sidelines of the Africa Mining Indaba.

"We're working at the moment to resolve the dispute that we have at (the) site and working hard to try and be back in production during this quarter. It's not certain at this stage but certainly that is the objective."

The company had said that farmer-led protests at the Balama project began in late September and have been hindering the movement of people and supplies and disrupting operations.

Force majeure is a clause that allows parties in a contract to avoid liability for unexpected external circumstances that prevent them from meeting obligations.

When asked about the impact on the industry of U.S. President Donald Trump's proposed 10% tariffs on all Chinese imports, Verner said: "Any additional tariffs are beneficial."

He noted that the existing U.S. tariff of 25% on anode material from China was a first step at trying to help rebalance the increased volumes from China at lower prices.

"But ultimately what we're seeking is some level playing field for us to be able to compete and continue to increase supply and diversify the sources of supply into the U.S.," he added.

Syrah has an active anode material facility in Louisiana, United States. The material is one of the key components needed by battery manufacturers and car makers.

In December, Syrah said its unit, Syrah Technologies LLC, filed an anti-dumping and countervailing duty petition with the U.S. Department of Commerce and the International Trade Commission.

Its petition, submitted in collaboration with the North American Graphite Alliance, sought an investigation into Chinese exports of natural and synthetic graphite active anode material used in lithium-ion batteries.

Graphite is the largest component by volume in an electric vehicle battery and China is the largest producer.

(Reporting by Nqobile Dludla. Editing by Jane Merriman)

((nqobile.dludla@thomsonreuters.com; +27103461066;))