Black Rock Mining Secures A$5M, POSCO Boosts Graphite Ambitions with US$277M Plant
Black Rock Mining advances its Mahenge Graphite Project with a A$5 million placement and POSCO’s strategic US$277 million investment in a Korean spherical graphite plant, signaling strengthened downstream integration and project momentum.
- Appointment of POSCO nominee Dongjoo Kim to Black Rock board
- Completion of A$5 million placement at A$0.023 per share for working capital
- POSCO Future M approves US$277 million spherical graphite plant in Korea
- Mahenge Project benefits from Tanzania’s expanded hydropower capacity
- Ongoing funding discussions including potential project-level partner
Strategic Board Appointment Strengthens Alliance
Black Rock Mining Ltd (ASX: BKT) has welcomed Mr Dongjoo (DJ) Kim, a senior manager at POSCO International, to its board as a Non-Executive Director. This appointment underscores POSCO’s deepening commitment to the Mahenge Graphite Project in Tanzania, where Black Rock holds an 84% interest. Mr Kim brings over 15 years of experience in raw materials investment and procurement, aligning with POSCO’s role as a major shareholder, strategic alliance partner, and offtake collaborator.
Capital Raising to Support Project Advancement
During the March 2025 quarter, Black Rock successfully completed a placement raising A$5 million at a discounted price of A$0.023 per share. The funds are earmarked for general corporate expenses and working capital, providing the company with runway as it pursues the remaining project funding. The placement attracted both new and existing institutional and sophisticated investors, reflecting confidence in the project’s prospects.
POSCO’s US$277 Million Investment Signals Downstream Integration
In a significant development post-quarter, POSCO Future M approved a US$277 million investment to construct a spherical graphite production facility in South Korea. Scheduled to commence construction in the second half of 2025 and target mass production by 2027, this plant is designed to process graphite concentrate from Mahenge. This vertical integration move by POSCO enhances the value chain from raw graphite to advanced anode materials, reinforcing Mahenge’s strategic importance.
Tanzania’s Power Infrastructure Boosts Project Sustainability
The recent commissioning of the 2,115MW Julius Nyerere Hydropower Plant in Tanzania, now operating at full capacity, is a game-changer for Mahenge’s operational footprint. With hydroelectric power expected to constitute up to 70% of Tanzania’s grid, Black Rock’s graphite production is poised to benefit from some of the lowest carbon emissions per tonne globally, enhancing its ESG credentials and market appeal.
Funding and Regulatory Landscape Remains Dynamic
Black Rock continues to engage with debt and equity advisors to secure the balance of funding required for project development. Discussions around bringing in a project-level partner as a less dilutive financing option are ongoing, though no definitive outcomes have been reached. Meanwhile, the company’s securities remain suspended pending clarity on the status of the Special Mining Licence from the Tanzanian government, a critical regulatory milestone for advancing construction readiness.
Market Context and Outlook
Graphite prices for Mahenge’s product mix have remained relatively stable over the past year, buoyed by higher-value large flake grades offsetting declines in fines. The imposition of US tariffs on synthetic graphite imports from China further supports natural graphite demand, positioning Mahenge favorably. Industry forecasts anticipate a recovery in graphite fines prices from the second half of 2025, aligning with Black Rock’s timeline for project ramp-up.
Bottom Line?
Black Rock’s strategic moves and POSCO’s downstream investment set the stage for Mahenge’s next growth phase, but funding and regulatory clarity remain pivotal.
Questions in the middle?
- Will Black Rock secure the remaining project funding or finalize a project-level partner soon?
- How will the Special Mining Licence status impact the project’s construction timeline?
- What are the implications of POSCO’s Korean plant for Black Rock’s future offtake volumes and pricing?
