Black Rock Mining (ASX:BKT) has signed a partnering memorandum of understanding (MoU) with Chinese spherical graphite manufacturing and marketing company, Yingkou Botian Material Technology Limited Company.
The MoU establishes the framework for the organisations to evaluate the commercial viability of a long-term commercial arrangement.
Botian has significant experience with spherical graphite and has expressed interest in purchasing 50,000 tonnes per annum of graphite concentrates from Black Rock’s flagship Mahenge Graphite Project in Tanzania.
Botian currently purchases 25,000 tonnes per annum for its spherical operations alone, an amount that is expected to significantly increase over the next three years.
John de Vries, interim CEO, commented: “We are pleased to be working with Botian, as a strong partner who are highly interested in our high quality graphite from the Mahenge Graphite Project.
“We look forward to progressing the relationship towards a commercial arrangement.
“Black Rock continues to build traction in the industry, with the MoU marking the second partnership after Meiwa Corporation of Japan, another active participation in spherical graphite production.”
Mahenge Graphite Project
In April 2017, a preliminary feasibility study (PFS) confirmed Mahenge’s potential as a long-life, low capex, high margin operation.
The PFS estimated a post-tax, unlevered, internal rate of return (IRR) for the Project of 48.7% and a net present value (NPV) using a discount rate of 10% of US$624 million.
Black Rock is moving towards commencing a definitive feasibility study (DFS).
With a successful DFS and associated financing, construction could commence in 2018 with first production in 2019.