Black Rock Mining has secured A$14 million through a placement and oversubscribed share purchase plan to kickstart early construction at its Mahenge Graphite Project in Tanzania, backed by strong government and industry support.
- Raised A$10 million via placement and A$4 million through oversubscribed SPP
- Early Works Program initiated post-quarter, including site earthworks and infrastructure upgrades
- Groundbreaking ceremony attended by Tanzanian Minister of Minerals and POSCO representatives
- A$3.6 million cash on hand at quarter end with no drawn debt
- Ongoing financing arrangements include a US$179 million facility agreement
Funding Milestone and Early Works Kickoff
Black Rock Mining Limited (ASX, BKT) marked a pivotal moment in the development of its Mahenge Graphite Project in Tanzania during the September 2025 quarter. The company successfully raised A$10 million through a two-tranche placement complemented by an oversubscribed A$4 million Share Purchase Plan (SPP). These funds are earmarked to finance the Early Works Program, which commenced shortly after the quarter ended, signaling a tangible step towards full-scale construction.
The Early Works Program encompasses critical preparatory activities such as site earthworks and improvements to access roads, designed to enable a swift ramp-up once full project funding is secured and the Final Investment Decision (FID) is made. This phased approach reflects Black Rock’s strategic management of capital and project risk, ensuring readiness while finalising financing.
Strong Stakeholder and Government Backing
The project’s momentum was underscored by a high-profile groundbreaking ceremony in October 2025, officiated by Tanzania’s Minister of Minerals, Hon. Anthony Mavunde. The event drew dignitaries including the Ambassador of the Republic of Korea and representatives from POSCO, Black Rock’s strategic partner. POSCO’s involvement, including a significant equity investment and offtake agreements, highlights the international confidence in Mahenge’s potential.
Mahenge is poised to be a major economic contributor to the Ulanga region, with projections of over 400 full-time equivalent jobs during initial operations, scaling to more than 900 as the project expands. A key infrastructure element is the construction of a 220kv high voltage powerline from Ifakara to Mahenge, which will not only power the mine but also catalyse broader regional industrialisation.
Financial Position and Market Context
At 30 September 2025, Black Rock held A$3.6 million in cash with no drawn debt, positioning the company to sustain early development activities while finalising larger financing arrangements. The company has a binding Facilities Agreement for US$179 million with a consortium including the Development Bank of Southern Africa, Industrial Development Corporation of South Africa, and CRDB Bank, subject to customary conditions precedent.
The graphite market remains broadly stable, with supply dynamics influenced by Chinese export controls and limited ex-China alternatives. Demand drivers remain robust, particularly from the electric vehicle (EV) sector, with the International Energy Agency projecting EV market share to exceed 30% by 2030, implying a substantial increase in graphite demand. Black Rock continues to supply samples from its pilot plant, positioning Mahenge to capture emerging opportunities.
Community and ESG Initiatives
Black Rock’s commitment to environmental, social, and governance (ESG) principles is evident in ongoing community engagement and livelihood restoration efforts. The company has completed compensation payments related to access road construction and is advancing infrastructure projects such as a new village-use well in Masoko. These initiatives aim to foster sustainable development and maintain strong local relationships as the project advances.
With all environmental approvals, mining licenses, and resettlement plans in place, Mahenge is construction-ready pending the finalisation of funding and FID. The company’s modular development approach and competitive cost positioning underpin its attractive project economics and potential for significant value creation.
Bottom Line?
Black Rock’s progress at Mahenge sets the stage for a critical financing and construction phase that could reshape the graphite supply landscape.
Questions in the middle?
- When will Black Rock announce the Final Investment Decision and secure full project funding?
- How will global graphite market dynamics, especially Chinese export controls, impact Mahenge’s commercial prospects?
- What are the timelines and risks associated with the 220kv powerline infrastructure development?