Tanzanian graphite developer, Black Rock Mining, has reached a significant milestone in advancing its Mahenge project by securing the final pieces of its financing puzzle with a substantial senior term loan from the Industrial Development Corporation (IDC) of South Africa. This new funding agreement complements a previously secured loan from the Development Bank of Southern Africa (DBSA), collectively bringing Black Rock closer to initiating production at what is set to be a groundbreaking graphite mining operation.
The IDC’s endorsement brings a $53.9 million senior term loan to the table, adding to the $59.6 million from the DBSA. With these critical financial pieces in place, Black Rock has now obtained all necessary loan approvals to move forward with the Mahenge project. While the specific terms of the loan are still being finalized, Black Rock anticipates a seven-year loan term with an interest rate tied to the secured overnight financing rate (SOFR), plus an additional margin.
However, realizing the full vision for the Mahenge project extends beyond securing debt financing; equity contributions are also a pivotal component of the funding strategy. In this vein, Black Rock has previously announced a memorandum of understanding with Posco, a strategic alliance partner, contemplating a cornerstone equity investment of up to $40 million into Black Rock. The company eagerly awaits the final go-ahead for this crucial investment.
Set against the backdrop of the Mahenge project’s definitive feasibility study, Black Rock’s ambitions are both bold and precise. The study outlines a four-stage construction timeline aimed at producing an impressive 340,000 tonnes per year of high-quality 98.5% LOI (Loss On Ignition) premium graphite flake concentrate over a 26-year life span. Moreover, the project holds the promise of refining ultra-purity flake graphite with a purity of 99% LOI, catering to the growing demand for high-quality graphite in various industrial applications.
With a projected start date in 2026 for Module 1 of the Mahenge project, Black Rock Mining is on course to significantly impact the global graphite market. The successful financial structuring of this venture not only underscores the viability and potential of the Mahenge project but also highlights the growing confidence in Tanzania’s mining sector and the broader African graphite industry. As Black Rock navigates the final stages of preparation and approval, the mining world watches with anticipation for what could be a transformative development in the supply of critical minerals essential for the modern economy.
Source: Mining Weekly
