Black Rock Mining Surges 15% on Transformational Power Deal for Mahenge Project

Key Highlights:

• Shares rise 15% to $0.023 on news of two key agreements with TANESCO
• New 220kV power line will connect Mahenge to low-cost hydro power
• Milestone de-risks project and improves ESG credentials ahead of funding drawdown

Black Rock Mining Ltd (ASX: BKT) shares surged 15% to $0.023 on Monday after the company inked two landmark agreements with Tanzania’s national utility, TANESCO, marking a major step forward for its flagship Mahenge Graphite Project.

The company’s 84%-owned subsidiary, Faru Graphite Corporation, has entered into an Implementation Agreement and Power Supply Agreement (PSA) with TANESCO to construct a 220kV power line and substation that will link Mahenge to hydro-dominated, high-voltage grid power. Once built, the infrastructure will be transferred to TANESCO, with Black Rock recouping its capital outlay over four years of mine production.

The deal, valued at US$40 million, aligns with cost forecasts from Black Rock’s Enhanced Definitive Feasibility Study (eDFS) and is to be funded via the company’s US$179 million debt facility secured with DBSA, IDC, and CRDB. More importantly, this milestone satisfies key conditions precedent for lenders, pushing Mahenge closer to full-scale development.

The access to grid-based hydro power not only reduces operational risks but also enhances the project’s green credentials, offering graphite products with one of the lowest carbon footprints in the global market. This bolsters Black Rock’s competitive advantage at a time when ESG compliance is becoming central to global battery supply chains.

CEO John de Vries called the agreement “transformational” for both Black Rock and the Mahenge region, adding it opens up energy access for surrounding communities and showcases the success of public-private partnerships in Tanzania.

With a market cap under $70 million and world-class graphite reserves, Black Rock is positioning itself to become a significant player in the EV and battery materials supply chain. As financing conditions firm up and construction-readiness nears, investor confidence in the project appears to be regaining traction.