Black Rock Mining

ASX-listed Tanzanian graphite developer Black Rock Mining has progressed formal negotiations to resolve the structure and nature of the 16% free-carried interest with the Tanzanian government.

Read more: Black Rock Mining enters EPC framework agreement for Mahenge project

Formal negotiations have commenced and a draft framework agreement (DFA), as prepared by the Tanzanian government, has been received by Black Rock.

The DFA is currently being reviewed.

Black Rock Mining continues to work constructively with the Tanzanian government and is pleased with the progress made to date, however, the company is unable to provide any indication as to if or when these negotiations will be successfully concluded.

This development follows other recent milestones achieved with the completion of the resettlement action plan (RAP) field activities, initiation of due diligence by TIB Development Bank, and the signing of a strategic alliance and development MOU with POSCO Group. Development of the Mahenge graphite project will provide significant economic and social benefits for Tanzania driven by the creation of full-time jobs, direct contribution to the Tanzanian economy, and new opportunities for Tanzanian businesses including ports, rail and power supply.

Black Rock is focused on resolving the FCI agreement with the Tanzanian government, which is a critical step in achieving financing conditions precedent.

Project progress at a glance

In February 2019, the company announced receipt of its mining licence for the definitive feasibility study. In May 2019, the company had substantially allocated planned production with up to 255 000 tpa of graphite committed to sale by year three of production, through pricing framework agreements.

Black Rock is currently progressing financing discussions and detailed engineering with a view to commencing construction of the Mahenge project.