Tanzania-based graphite developer Black Rock Mining has signed a non-binding memorandum of understanding (MoU) with its strategic partner Posco for the supply of graphite.
The natural large flake graphite concentrate will be supplied by Black Rock from its Mahenge Graphite project in Tanzania’s Ulanga district.
As part of the offtake agreement, Black Rock will supply up to 6,000 metric tonnes per annum of natural large flake graphite from the planned production of Mahenge Module 1.
The company expects to begin negotiations with Posco regarding product specifications and commercial terms.
This agreement builds on the alliance between the firms and focuses on making the Mahenge graphite project a “significant new source of natural graphite”.
It will also help Black Rock in establishing an additional source of revenue with a blue-chip counterparty such as Posco.
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Black Rock CEO John de Vries said: “Expanding the strategic partnership with Posco is a meaningful step as Black Rock advances the Mahenge Graphite Project towards production. Not only are we building a stronger offtake position with one of the world’s largest battery anode producers, but critically, this agreement represents an important de-risking milestone for our potential lenders as part of finalising our project debt for Mahenge.
“I am also pleased that Posco continues to place their trust in Black Rock as a partner with respect to supporting their own growth plans. Mahenge represents a globally significant, large and critical new source of high-quality natural flake graphite, which is now one step closer to securing debt finance in advance of construction.”
The Mahenge project hosts multi-generational graphite resources and is considered to be one of the largest flake graphite resources globally.
Comprising 324km² of exploration tenements, the project claims to host 212m tonnes at 7.8% total graphite content (TGC), and a reserve of 70m tonnes at 8.5% TGC.
The company’s feasibility study for the project considers a four-stage construction schedule, which can deliver up to 340,000 tonnes per annum of 98.5% graphite concentrate of 98.5%, for 26 years.