Black Rock aligns with Posco to develop Tanzanian project

Subject to the completion of a successful due diligence, Posco would invest an initial $10-million in either shares or convertible notes in Black Rock, with the funding going towards early work programmes and the provision of all-weather site access at Mahenge.

A second investment, of an amount yet to be determined, would also be made by Posco , with those funds going towards project construction.

The Phase 2 investment would be made either by a share subscription into Black Rock or by taking a direct interest in the Mahenge project, or by obtaining the offtake rights for up to 100% of the sub #100 mesh concentrate from the first module at Mahenge, which amounts to some 40 000 t/y.

Black Rock MD and CEO John de Vries said on Tuesday that the MoU with Posco represented another significant step forward for the Mahenge project.

“The proposed alliance with POSCO de-risks the project through significant financial capacity and geographic diversity. We anticipated key elements of this alliance and a need to complete detailed due diligence as part of our project development strategy completed back in 2018. This was achieved through a best in class definitive feasibility study (DFS) supported by the biggest pilot plant in the sector.”

De Vries said that Black Rock’s ability to deliver Mahenge concentrate into Posco ’s existing China-based supply chain supported the company’s existing relationships with Chinese construction and mining partners; China Seventh Railway Group and Yantai Jinyuan.

An extended DFS at Mahenge estimated that the Stage 1 development would require a capital investment of $116-million to produce an initial 85 000 t/y. The project could be enlarged with the addition of three more modules, each contributing 85 000 t/y in production.

Over the 32-year mine life, the Mahenge project is projected to produce some 7.4-million tonnes of concentrate.