Black Rock signs MOU for rail transport from Mahenge

2023-04-10

Apr. 1, 2023 - Tanzanian graphite developer Black Rock Mining Limited (ASX: BKT) (Black Rock or the Company) is pleased to announce that is has signed a non-binding Memorandum of Understanding (MOU) with Tanzania Zambia Railway Authority (TAZARA) for the transportation of graphite products from the Mahenge Graphite Project (Mahenge or the Project). 

TAZARA Rail Transportation MOU 

An MOU has been executed between Faru Graphite Corporation Limited (Faru) (Black Rock’s Tanzanian subsidiary) and TAZARA. The agreement establishes a framework for a binding agreement to transport graphite produced by Black Rock at Mahenge to the Port of Dar es Salaam, via an existing railway siding and rail lines owned by TAZARA. The agreement includes provision for track rights as well freight haulage. 

The objectives of the MOU are designed to support cost-effective key logistics requirements for Black Rock’s planned operations at Mahenge, with key terms including:

• Ability for TAZARA to transport 89,000 metric tons of graphite produced from Module One, ramping up to 344,000 metric tons in full production from Module Four; 

• Rail transportation and access for graphite products to the high-volume container port of Dar es Salaam via the existing railway and sidings; 

• Determine an appropriate operating regime (run-when-ready or dedicated train path) that will best support Black Rock’s intended operation at Mahenge; and 

• Provide secure storage facilities. 

Commenting on the MOU with TAZARA, Black Rock CEO, John de Vries, said:

“Direct access to rail will give Black Rock a tremendous advantage when it comes to running a lower cost and sustainable operation. Having rail on our doorstep clearly demonstrates this unique competitive advantage that ultimately enables Black Rock to access key customer destinations from the deep-water port of Dar es Salaam.

This rail infrastructure is already in place, and with the recent MOU with Tanzania Electric Supply Company Limited (TANESCO) for grid power, Black Rock continues to focus on establishing the building blocks required as part of our long-term plan to deliver a world-class, sustainable and responsible graphite operation at Mahenge.”