Black Rock Mining has marked a significant milestone at its Mahenge Graphite Project with an official groundbreaking ceremony and robust funding progress, setting the stage for rapid development in Tanzania.
- Official groundbreaking ceremony attended by Tanzanian Minister and POSCO representatives
- Early works including access road resettlement and 220kV transmission line underway
- Raised A$4 million in oversubscribed Share Purchase Plan, well-funded with A$9.6 million cash
- Ongoing project financing discussions supported by global critical minerals policies
- Transmission line to provide hydro-dominated power, enhancing green credentials and regional industrialisation
Milestone Groundbreaking Ceremony
Black Rock Mining Limited (ASX, BKT) has taken a decisive step forward in its development of the Mahenge Graphite Project in Tanzania, hosting an official groundbreaking ceremony in December 2025. The event was graced by the Tanzanian Minister of Minerals, Hon. Anthony Mavunde, the Ambassador of the Republic of Korea, Her Excellency Ahn Eun Ju, and representatives from POSCO, a major Korean battery materials company and strategic partner in the project.
This ceremony symbolises the transition from planning to tangible progress, marking the commencement of the Early Works program. These initial activities are designed to pave the way for a swift ramp-up of construction once full funding is secured and the Final Investment Decision (FID) is made.
Infrastructure Advancements and Regional Impact
Key infrastructure developments are well underway, notably the construction of a 220kV high-voltage transmission line connecting Ifakara to Mahenge. This power line, to be owned initially by Black Rock’s subsidiary Faru Graphite Corporation before transfer to Tanzania Electric Supply Company Limited (TANESCO), will supply competitively priced, hydro-dominated electricity. This green power source not only enhances the environmental credentials of Mahenge’s graphite but also lays a foundation for broader industrialisation in the Ulanga region.
Additionally, the company has completed resettlement compensation payments for the access road corridor, a critical step that unlocks access for construction activities. The project is expected to create over 400 full-time equivalent jobs initially, expanding to more than 900 as the operation scales up through its modular development approach.
Strong Financial Position and Ongoing Funding Efforts
Financially, Black Rock is well-positioned to advance the project’s early works, having raised A$4 million through an oversubscribed Share Purchase Plan during the quarter, supplementing a prior A$10 million equity placement. At quarter-end, the company held A$9.6 million in cash with no drawn debt, alongside undrawn financing facilities totalling AUD274 million, subject to conditions precedent including equity contributions.
Project financing discussions remain active with multiple parties, buoyed by supportive global policies targeting critical minerals supply chains. The involvement of international frameworks such as the Minerals Security Partnership, chaired by the Republic of Korea, underscores the strategic importance of Mahenge’s graphite in the global battery materials market.
Strategic Partnerships and Market Context
POSCO continues to play a pivotal role, holding offtake agreements for fines from the project and investing in downstream processing facilities in Korea. This partnership aligns Mahenge with a growing demand for natural graphite in lithium-ion batteries, particularly as synthetic graphite faces rising production costs.
While graphite prices remained relatively stable during the quarter, the long-term outlook is positive, driven by accelerating growth in battery energy storage systems and electric vehicles. Black Rock’s access to low-cost, green power and its tier-one scale resource position it competitively on the global cost curve.
Corporate Developments and Governance
On the corporate front, Black Rock appointed Harry Miller as Company Secretary in December 2025, ensuring continued strong governance and communication with the ASX. The company also successfully conducted its Annual General Meeting, passing all resolutions on a poll, reflecting shareholder confidence in the project’s trajectory.
Exploration and early works expenditures continue, with nearly A$1 million spent during the quarter, focused on consulting, site costs, environmental and social impact assessments, and resettlement activities.
Bottom Line?
With infrastructure milestones achieved and funding momentum building, Black Rock is poised to advance Mahenge towards production, though the timing of full project financing remains a key watchpoint.
Questions in the middle?
- When will Black Rock secure the remaining project financing to trigger the Final Investment Decision?
- How will global graphite market dynamics and synthetic graphite competition impact Mahenge’s economics?
- What further regional industrial developments might the new transmission line enable beyond the Mahenge project?