Black Rock Mining Ltd (ASX:BKT) has awarded a bulk earthworks contract for its Mahenge Graphite Project in Tanzania to local contractor Taifa Mining and Civils for a total contract sum of US$11 million. The tender was run as a competitive process in compliance with Tanzania’s Mining (Local Content) Regulations, with contract formalisation subject to Mining Commission approval.
Black Rock has advised Taifa of its selection as preferred contractor and has submitted the required approval request to the Mining Commission. Managing director John de Vries said the selection reflected the company’s local content approach and focus on value, noting the pricing secured is consistent with Black Rock’s FEED estimates for Mahenge. Taifa previously won the tender for contract mining services for the operational phase of the project.
"We are pleased to award the bulk earthworks contract to Taifa Mining and Civil, a leading Tanzanian contractor. This award follows a competitive tender process and demonstrates our commitment to local content compliance and delivering value for the project," de Vries said.
"By structuring the contract into two phases, we can proceed immediately with the critical diversion of the Mdindo stream followed by the main body of the earthworks. This is a vital de-risking step that clears the path for the main construction phase. It ensures that once our Final Investment Decision is made, the site is physically ready for a rapid transition into full-scale construction.
"The pricing we have secured is consistent with our FEED estimates, further validating the robust economics of the Mahenge Graphite Project as we move toward execution."
What the work covers and how it is staged
The scope is structured into two separable portions to allow critical path activity to start while project financing is finalised:
- Separable Portion 1 (SP1) – Early works: US$946,522, covering mobilisation, establishment of contractor facilities and construction of the Mdindo stream diversion.
- Separable Portion 2 (SP2) – Main works (post-FID): US$10.1m, covering broader site earthworks including internal roads, the process plant area, dry stack tailings preparation, dams and contractor laydown areas.
Black Rock said it will issue a Limited Notice to Proceed (LNTP) for the early works, with site activities to start once regulatory approvals are in place. The main works component is subject to project financing and a Final Investment Decision (FID).
Why it matters for Mahenge’s construction readiness
The company is treating the Mdindo stream diversion as the priority early works item, describing it as a de-risking step intended to create unrestricted access to the plant site area. Black Rock’s view is that completing the diversion ahead of FID positions the project for a faster transition into full-scale construction once financing is secured.
The contract award follows progress on enabling works tied to land access. Black Rock said it has successfully completed the Resettlement Action Plan (RAP) and compensation for non-contested Potentially Affected Persons (PAPs) for impacted areas outside the Special Mining Licence (SML), including the Faru John Road (lower access road).
The company also flagged that a separate tender process will be developed for works associated with the Faru John Road and the resettlement villages area.
About Black Rock Mining
Black Rock Mining holds an 84% interest in the Mahenge Graphite Project in Tanzania. The company released an enhanced Definitive Feasibility Study for Mahenge in July 2019 and has secured key permitting milestones, including environmental approvals, mining licences and its Resettlement Action Plan.
In June 2022, Black Rock entered a strategic alliance with POSCO to support Mahenge’s development. This included a US$7.5 million equity investment, an offtake agreement covering Module 1 fines (32% of volume) and a US$10 million prepayment facility. POSCO later signed an MoU for 6ktpa of large flake graphite (about 7% of volume), lifting its Module 1 offtake interest to close to 40%. In September 2024, Black Rock said POSCO approved a US$40 million equity investment and secured the fines offtake for Mahenge Module 2.
Black Rock holds a Special Mining Licence under a framework agreement with the Government of Tanzania that confirms a 16% free-carried interest (September 2022).
The company has completed Front End Engineering Design (FEED), re-estimating capital and operating costs as part of its eDFS update, which it says reaffirmed Mahenge’s project economics. Black Rock highlighted key metrics including a resource of more than 200Mt, a modular development plan with initial capex of US$231m, an adjusted C1 cash cost of US$359/t, and projected unlevered post-tax IRR (after free carry) of 36%, alongside an NPV10 (post-tax, post free carry) of A$2.1 billion (or US$1.4bn).
In September 2024, Black Rock announced it had signed a facilities agreement for US$179 million with DBSA, IDC and CRDB, and said Mahenge is construction-ready subject to securing the remaining funding.