Black Rock Mining Ltd (ASX:BKT) Signs Agreements with TANESCO
Agreements with TANESCO
Black Rock Mining Ltd (ASX:BKT) has signed two key agreements with the Government-owned Tanzania Electric Supply Company Limited (TANESCO). Under the Implementation Agreement, Faru Graphite Corporation, an 84%-owned subsidiary, will construct a 220kV power line and substation, transferring ownership to TANESCO upon completion. The Power Supply Agreement allows Faru to recoup the US$40 million project cost from TANESCO over the first four years of mine production with a more rapid repayment schedule than previously estimated.
Project Impact
The new 220kV power line will connect Mahenge to competitively priced, high-voltage hydro-dominated power, marking a transformational development for the Mahenge region. This access to sustainable grid power enhances the green credentials of Mahenge’s graphite products, resulting in a significantly lower carbon footprint compared to global peers. The agreements represent a key de-risking milestone, satisfying conditions precedent for project lenders.
Executive Comments
John de Vries, Managing Director & CEO of Black Rock Mining, stated, “We are extremely proud to be signing these Agreements with TANESCO which represent a transformational development for both Black Rock and for the communities of the whole Mahenge region. Access to grid power is fundamental to Mahenge being globally competitive through the price cycle. The new 220kV power line will connect the whole Mahenge region to competitively-priced, high-voltage power opening up new and exciting opportunities for a host of local businesses and expands TANESCO’s reach in Tanzania. This is a true win-win solution for Mahenge, our communities and TANESCO. The new power line is also a pivotal component of the Mahenge Graphite Project, as the hydro-dominated grid power in Tanzania enhances the green credentials of Mahenge’s graphite products, which will have a much lower carbon footprint and environmental impact than most of our global peers. The development model is a real example of how Public-Private Partnerships can work and deliver meaningful national development benefits.”
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