(Ecofin Agency) - Africa could soon overtake China as the world’s top graphite producer. The continent houses the world’s second-largest mine, in Mozambique and Black Rock’s Mahenge project in Tanzania could foster this paradigm shift.

Black Rock Mining has obtained approval from the Tanzanian CRDB Bank for two loans totaling $40 million. With this, the Australian firm has met its goal of securing $153 million in loans to develop the Mahenge graphite mine in the East African country.

$BKT confirms it now has the key approvals in place for the US$153m in debt facilities required to develop
the Mahenge #Graphite Project.

Link to release: https://t.co/mRzU7oKUjw
#BKT #mining #batterymetals #anode #EV #cleanenergy #criticalmineral ASX:BKT #invest pic.twitter.com/HF4FCKG8Ma

— Black Rock Mining (@BlackRockMining) March 17, 2024

Besides the loans it secured from CRDB, Black Rock had already contracted a $59.6 million loan from the Development Bank of Southern Africa (DBSA) and a $53.4 million loan from South Africa's Industrial Development Corporation. The conclusion of these various financing arrangements remains subject to final documentation.

According to a 2022 feasibility study, an initial investment of $222 million is required to develop the Mahenge graphite mine. Once it has secured the debt needed to partly fund the project, Black Rock will raise the remainder from equity. In particular, Black Rock is counting on the South Korean group POSCO for a contribution of up to $40 million. Last September, the two signed a deal for POSCO to acquire a stake in Black Rock Mining.

The Mahenge mine should begin production in 2026, delivering up to 340,000 tonnes of graphite concentrate annually over 24 years. The mine should improve Africa’s position in the global graphite market, which is currently dominated by China.

Emiliano Tossou