Funding and Infrastructure Challenges Loom as Black Rock Starts Mahenge Construction
Black Rock Mining has officially launched the Early Works phase at its Mahenge Graphite Project in Tanzania, marking a key milestone supported by strong partnerships and infrastructure plans.
- Early Works program officially commenced following groundbreaking ceremony
- Project backed by Tanzanian government and Korean partners including POSCO
- Development includes new 220kv powerline to ensure competitive operating costs
- Modular project design targeting over 900 full-time jobs at full scale
- Financing progressing with multiple development banks involved
Milestone Groundbreaking Ceremony
On 9 October 2025, Black Rock Mining Ltd (ASX – BKT) celebrated a significant milestone with a formal groundbreaking ceremony at its flagship Mahenge Graphite Project in Tanzania. The event was officiated by the Hon. Anthony Mavunde, Tanzania's Minister of Minerals, and attended by dignitaries including the Korean Ambassador and representatives from POSCO, a key strategic partner. This ceremony marks the official start of the Early Works program, a preparatory phase designed to accelerate construction once full funding is secured and the Final Investment Decision (FID) is made.
Strategic Partnerships and Regional Impact
Black Rock holds an 84% interest in Mahenge, which is poised to become a world-class graphite producer. The project is a cornerstone for regional development in the Ulanga area, promising over 400 full-time equivalent jobs during the initial module and scaling to more than 900 jobs as all four modules come online. The involvement of POSCO, which has invested equity and secured offtake agreements for the graphite fines, underscores the project's global relevance. POSCO’s affiliated company, POSCO Future M, plans to build a new spherical purified graphite plant in Korea, further integrating the supply chain.
Infrastructure to Drive Competitiveness
A critical component of the project’s competitive edge is the construction of a 220kv high voltage powerline from Ifakara to Mahenge. This infrastructure will provide reliable, hydro-powered electricity, positioning Mahenge in the lower quartile of the global cost curve. Beyond powering the mine, the powerline is expected to catalyse broader industrialisation and resource development in the region, enhancing Tanzania’s economic landscape.
Financing and Future Outlook
Black Rock is advancing its financing strategy with a unique blended model involving CRDB Bank, the Development Bank of Southern Africa, and the Industrial Development Corporation of South Africa. This approach, highlighted by Chairman Richard Crookes, exemplifies how transparency and strong partnerships can unlock major project funding in Tanzania. The company is now construction-ready, pending the completion of funding arrangements and the FID.
Alignment with Global Mineral Security Goals
The Mahenge project aligns with the Minerals Security Partnership (MSP), chaired by the Republic of Korea since mid-2024. The MSP aims to diversify and stabilise critical mineral supply chains essential for high-tech industries such as electric vehicles and batteries. Black Rock’s collaboration with Korean entities and its role in this global initiative highlight the strategic importance of Mahenge in securing sustainable graphite supplies.
Bottom Line?
As Black Rock advances Mahenge’s development, the next critical phase will hinge on securing full funding and delivering on its promise to reshape Tanzania’s graphite landscape.
Questions in the middle?
- When will Black Rock finalise the full funding package and make the Final Investment Decision?
- How will the new powerline impact operational costs and regional industrial growth beyond the mine?
- What are the potential risks or delays associated with modular expansion beyond the initial phase?
