Black Rock signs graphite agreement

Black Rock Mining has signed a strategic agreement with a Chinese machinery company to supply plant equipment and source up to $US40 million ($55 million) for the graphite explorer’s Mahenge project in Tanzania.

Under the agreement, Yantai Jinyuan Mining Machinery, which is part of the Yantai Jinyuan Group, has agreed to work with Black Rock with a view to the Chinese group supplying process plant machinery and related infrastructure at the graphite project.

In addition, Yantai has committed to working with Black Rock to secure up to $US40 million in project finance from Chinese groups, including the government import export credit agency.

Yantai is a vertically integrated processing equipment supplier with capacity to supply processing equipment and turnkey project delivery of metallurgical projects.

“Securing Yantai as our process plant construction partner is a major step in the delivery of our 100 per cent-owned Mahenge graphite mine,” Black Rock managing director John de Vries said.

“Yantai enhances our diligent technical work program of the pre-feasibility study, pilot plant, and the definitive feasibility study with a proven engineering and delivery capability.

“Mahenge’s planned production rate of 3,000 tonnes per day fits well within Yantai’s experience.

“In addition to a best in class delivery capability, Yantai also establishes our financing pathway and opens a further channel to market for product placement though their reputation for delivering quality graphite projects.”

Shares in Black Rock were off 5.71 per cent at 3.3 cents each today.