The loan will fund the graphite project in Tanzania. Credit: pointbreak via Shutterstock.com.

Black Rock Mining has announced the approval of a $53.4m ($81.33m) loan from the Industrial Development Corporation (IDC) to fund its Mahenge Graphite Project in Tanzania.

The loan is a significant step towards the full financing of the project, which is expected to commence production in 2026.

Go deeper with GlobalData

Data Insights

The gold standard of business intelligence.

Find out more

Related Company Profiles

View all

IDC’s senior-term loan is set to be part of the project’s debt facilities for Mahenge, and the finalisation of the loan is contingent upon the documentation of definitive agreements.

The loan from IDC, combined with a previously approved $59.6m senior loan from the Development Bank of Southern Africa, is anticipated to constitute a $113m term loan package for the project.

Loan terms are yet to be finalised, but the expected tenure is seven years.

Black Rock Mining is now focused on documenting full form facility agreements and confirming the final structure of the Mahenge project’s debt package.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

The terms and conditions for such facilities are typical for this type of financing. However, there is no certainty regarding the conditions that potential lenders may impose or whether facility agreements will ultimately be executed.

The funding strategy for the project includes a mix of debt and equity to start production.

On 4 September 2023, Black Rock entered a memorandum of understanding (MOU) with its Strategic Alliance Partner, Posco International.

The MOU outlines a potential cornerstone equity investment of up to $40m in Black Rock.

Final approvals for this investment are expected in the near term, which will further bolster the project’s financial position.

The company has set its sights on achieving first production from Module 1 of the Mahenge Graphite Project by 2026.