Tanzanian graphite developer Black Rock Mining has achieved a significant milestone by securing the necessary debt facilities to advance its Mahenge project.
The company finalized a new senior term loan from South Africa’s Industrial Development Corporation (IDC), completing the financing package crucial for mine production.
The IDC approved a senior term loan of $53.9 million for the project, adding to the $59.6 million previously secured from the Development Bank of Southern Africa (DBSA). With these key approvals, Black Rock has secured the targeted term loan for the project.
The loan terms, subject to documentation, are expected to include a seven-year tenor and an interest rate based on the secured overnight financing rate (SOFR), plus a margin.
To reach production, funding for the project will require both debt and equity. Black Rock has a memorandum of understanding with its strategic alliance partner, Posco, for a potential equity investment of up to $40 million. Final approvals for this investment are anticipated soon.
Black Rock’s goal is to commence production at Module 1 of Mahenge by 2026. The definitive feasibility study outlines a four-stage construction schedule to produce up to 340,000 tonnes per year of 98.5% graphite concentrate for 26 years, with the capacity to produce ultra-purity flake graphite of 99% LOI.
