Mahenge Project Faces Financing and Approval Tests Despite Early Works Start

Early Works Signal Transition from Planning to Construction

Black Rock Mining Limited (ASX – BKT) has taken a significant stride forward in developing its Mahenge Graphite Project in Tanzania by commencing an early works program. This move follows a successful equity placement raising A$10 million, which provides the necessary capital to start foundational construction activities ahead of the project's Final Investment Decision (FID).

The early works program is designed to prepare the site for rapid construction ramp-up once full funding is secured. It includes critical tasks such as completing community resettlement and compensation, improving access roads, initiating plant site earthworks, and advancing the high voltage powerline infrastructure in collaboration with Tanzania's national utility, TANESCO.

Community and Infrastructure Foundations

Community engagement remains a priority, with compensation payments for land access roads nearing completion. This step is essential to ensure smooth progress on infrastructure development without social disruption. The powerline project, a vital component for supplying competitively priced, hydro-powered electricity to the site, has entered the survey and design phase, setting the stage for contract tendering and eventual construction.

The formal groundbreaking ceremony, planned for 9 October 2025, will mark the symbolic start of construction activities, with Black Rock's board members expected to attend. This event underscores the company’s commitment to advancing the project and signals confidence in its future prospects.

Strategic Partnerships and Financing Milestones

Black Rock’s progress is supported by a series of strategic milestones achieved over recent years, including offtake agreements with global partners like POSCO International, appointment of a Tanzanian mining contractor, and resolution of key tax and financing arrangements. POSCO’s equity investment and offtake commitments provide both financial backing and market certainty for the graphite produced.

The company has already received A$4.5 million from the first tranche of the placement, with the remaining tranche contingent on shareholder approval at the upcoming general meeting on 17 October 2025. The successful completion of this financing round is critical for Black Rock to reach its FID and fully unlock the project’s potential.

Robust Project Fundamentals

Mahenge is positioned as a world-class graphite development with a resource base exceeding 200 million tonnes and one of the largest graphite reserves globally. The project’s modular development approach, competitive cost structure, and access to low-cost hydroelectric power underpin its attractive financial metrics, including a post-tax internal rate of return of 36% and a net present value of approximately A$2.1 billion.

With early works underway, Black Rock is transitioning from feasibility and planning into tangible construction progress, setting the stage for what could be a transformative development in the graphite sector.