The funding comes from a collaboration with the Development Bank of Southern Africa (DBSA), the Industrial Development Corporation (IDC), and CRDB Bank of Tanzania.
The agreement, signed on 13th September 2024 in Johannesburg, aims to facilitate the development of the Mahenge Project, which is set to begin production in 2026.
The financing comprises several components, including a US$ 113 million Construction Term Loan designated for the construction of Mahenge Module 1 and necessary infrastructure.
Additionally, the agreement includes a US$ 20 million Revolving Credit Facility for working capital, a US$ 20 million Cost Overrun Facility, and a US$ 26 million Bank Guarantee Facility aimed at covering rehabilitation costs.
This funding is critical for the project’s development, which includes establishing a 220kV power line to connect the local community to electricity, thereby fostering new business opportunities in the region.
John de Vries, CEO of Black Rock Mining, commented on the significance of this agreement: “We are extremely pleased to have concluded our debt financing process for Mahenge and to be signing the Facilities Agreement with a group of such high caliber lenders.represents a major de-risking milestone for Black Rock towards funding the development of the Mahenge Graphite Project. We look forward to working with DBSA, IDC, and CRDB to develop Mahenge for the benefit of all our stakeholders.”
On his part, CRDB Bank’s CEO, Abdulmajid Nsekela, said, “We are proud that CRDB Bank has earned the trust of major investors in this project, which, aside from the commercial benefits for the Bank, will also stimulate development in the Mahenge and Ulanga areas where the project will be carried out, and contribute to the entire nation through taxes and the acquisition of foreign exchange.”
Located in south-east Tanzania, the Mahenge Graphite Project is recognized for its extensive resource base, with over 200 million tonnes of graphite reserves, positioning it among the largest globally.
The project is fully owned by Black Rock Mining. The remaining 16% is owned by the government of Tanzania as a free-carried interest.
The Project is expected to produce up to 340,000 tonnes of graphite concentrate annually over a 24-year period, positioning Tanzania as a key player in the global graphite market.
In addition to this recent financing, Black Rock Mining is also in discussions for further equity investment from South Korea’s POSCO, which could add an additional US$40 million to the project’s funding pool.
