Tanzania’s graphite mining project secures $179m for development
The Mahenge Graphite Project in Tanzania has received $179 million from three financial institutions for the development of the project.
The funding agreement, signed in Johannesburg includes contributions from Tanzania's CRDB Bank, the Development Bank of Southern Africa (DBSA), and the Industrial Development Corporation (IDC), the Citizen reports.
In a statement, the CRDB Bank explained the $179 million arrangement, which includes $153 million in debt funding and $26 million in a bank guarantee for the mine’s rehabilitation bond. CRDB Bank committed a total of $66 million, comprising $20 million for cost overruns, $20 million for working capital, and $26 million for the rehabilitation guarantee. DBSA and IDC pledged $59.6 million and $53.4 million, respectively.
"This collaboration not only supports a vital supply chain for battery minerals but also fosters local community development through job creation, infrastructure, and business opportunities," CRDB Bank CEO Abdulmajid Nsekela said.
The Mahenge Graphite Project spans 324 square kilometres in Tanzania’s Ulanga district, located roughly 250 km north of the Mozambique border and 250 km west of Mtwara, a coastal port city on the Indian Ocean.
The Mahenge Graphite Project is managed by Faru Graphite Corporation, the Tanzanian subsidiary of Black Rock Mining.
Discovered by Black Rock Mining in 2015, the Mahenge deposit is one of the largest graphite deposits globally, containing a resource of 213 million tonnes at a grade of 7.8% Total Graphitic Carbon (TGC), which equates to 16.6 million tonnes of contained graphite.
