Black Rock Mining has signed an offtake agreement for the supply of natural flake graphite from its 100%-owned Mahenge Graphite Mine in Tanzania to Chinese company Heilongjiang Bohao Graphite.
The three-year agreement, which has been signed through Black Rock’s wholly-owned Tanzanian subsidiary, Mahenge Resources, covers about 37.5% of the proposed steady-state production of 240,000t per annum.
Black Rock Mining CEO John de Vries said: “The signing of this offtake agreement vindicates our pilot plant strategy that saw us producing around eight tonnes of graphite concentrate from a 90t run, which enabled us to deliver meaningful volumes of product to 24 potential customers around the world.
“90,000t per annum is the largest offtake agreement signed by any developer by an order of magnitude and substantially underwrites our steady-state operations of 240,000t per annum.
“They have an operation targeting the consumption of up to 100,000t of flake graphite annually. The partnership between Black Rock and Heilongjiang Bohao will be key for both parties in the coming years.”
Under the terms of the agreement, Black Rock will supply 30,000t, 50,000t and up to 90,000t in the first, second and third years, respectively.
The company will agree on the pricing under the terms of a formal agreement which would be signed by them within one year of execution.
It will be set quarterly with reference to the market price for flake size and concentrate grade.
The agreement and the obligation to deliver the product is subject to completion of the Mahenge mine construction and associated infrastructure, and starting of its operation by Black Rock.