ASX-listed Black Rock Mining has secured a substantial financing boost for its Mahenge Graphite Project in Tanzania, totaling US$ 219 million.
The financing comes from two agreements: one with POSCO International Corporation (POSCO), Koea’s largest trading company, and one with the Development Bank of Southern Africa (DBSA), the Industrial Development Corporation (IDC), and CRDB Bank of Tanzania.
The first agreement signed with POSCO, announced on 3rd September 2024, injects US$ 40 million into Black Rock to advance the development of Mahenge Module 1, for which POSCO has already secured an offtake contract for all fines graphite produced.
POSCO’s investment is structured in two tranches. Tranche 1 involves an investment of US$9.0 million in 155.3 million shares at A5.8c per share, representing a 10% premium over the 10-day volume weighted average price. This tranche will raise POSCO’s stake in Black Rock from 10.1% to 19.99%.
Tranche 2 will cover the remaining portion of POSCO’s US$ 40 million investment, allocated at the same price as other investors in the final equity raising. This funding is designated for the development of Module 1, contingent on the Final Investment Decision (FID). This tranche will ensure that POSCO’s total ownership in Black Rock is capped at 19.99%.
The second agreement was signed with the Development Bank of Southern Africa (DBSA), the Industrial Development Corporation (IDC), and CRDB Bank of Tanzania on 13th September 2024 in Johannesburg.
It is worth US$ 179 million and aims to facilitate the development of the Mahenge Project, which is set to begin production in 2026.
This 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 these agreements: “We are extremely pleased to be further deepening our relationship with POSCO and we believe today’s announcement represents a strong endorsement of the promising future of the Mahenge Graphite Project.”
“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.” he added.
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.”
The Mahenge Graphite Project
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 24 years, 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 US$40 million to the project’s funding pool.
Want to know more about Mining in Tanzania? Our free Tanzania Business and Investment Guide 2026 covers Mining, plus regulations, key sectors, and investment opportunities—all in one place.
Download Free Guide
