Black Rock Nears Mahenge Construction with Early Works Complete and Funding Talks Underway

Early Works Set Stage for Rapid Construction

Black Rock Mining (ASX:BKT) is poised to accelerate the Mahenge Graphite Project in Tanzania, having nearly completed its early works program that clears the path for full-scale construction once final funding is secured and a Final Investment Decision (FID) is made. The company has wrapped up community compensation payments for the Faru John Road corridor in line with International Finance Corporation standards, a milestone that follows the 2022 resettlement of the mining licence area to national requirements. With these social and environmental hurdles largely behind it, Black Rock is now focused on finishing earthworks and access road resettlement by late Q2 2026, timing that aligns with the end of the wet season.

These developments build on previous momentum, including the official groundbreaking ceremony earlier this year, which underscored the project’s readiness to transition from planning to execution. The early works contract pricing has been validated against the company’s Front End Engineering Design (FEED) completed in 2022, providing cost certainty ahead of the main construction phase.

Local Contractors and Critical Infrastructure in Place

A significant step forward came with awarding the US$11 million bulk earthworks contract to Taifa Mining and Civils Limited, a Tanzanian firm that previously secured the operational mining services contract. The contract is split into early works valued at just under US$1 million for critical path activities such as the Mdindo stream diversion channel, which will unlock unrestricted access to the plant site, and a main works phase contingent on financing and FID.

Meanwhile, Black Rock’s 84%-owned subsidiary, Faru Graphite Corporation, has completed preliminary surveys for the 220kV transmission line from Ifakara to Mahenge. This vital infrastructure will connect the project to Tanzania’s hydro-dominated grid via the government-owned TANESCO, enhancing the green credentials of Mahenge’s graphite by ensuring low-carbon power supply. The capital cost of the power line will be recouped from TANESCO over the first four years of production, a key agreement that de-risks power supply costs and aligns with the company’s sustainability goals.

Funding Discussions Gain Traction Amid Supportive Market

Black Rock remains in active talks with multiple parties across various equity structures to secure the remaining project financing. With A$7.2 million in cash at quarter-end and undrawn US$179 million in financing facilities from Development Bank of Southern Africa, IDC, and CRDB Bank, the company is increasingly confident about arranging a suitable funding package. Global policy support for critical minerals in the US, Europe, and Asia provides a favourable backdrop for strategic investment, particularly given Mahenge’s Tier 1 scale and its strategic alliance with South Korea’s POSCO.

Graphite prices have shown modest improvement in the quarter, particularly for refined products such as 17um Spherical Purified Graphite and 99/80 250 expandable graphite, with increases of about 5-7%. The introduction of FOB Africa pricing has also contributed to a notable uplift in overall price benchmarks. These pricing trends add a positive dimension to the project’s economics, which already feature a low-cost position and attractive projected returns.

Black Rock’s steady progress, including the recent bulk earthworks contract award(4feb2026-00000000-0000-0000-0000-000000000000) and ongoing early works milestones, highlights its commitment to advancing the Mahenge Project toward construction readiness. The company’s ESG initiatives continue alongside construction preparations, with community projects such as school nutrition programs, solar panel installations, and new water wells reinforcing its social licence to operate.