Black Rock Mining Limited is set to supply power to Mahenge Graphite Project in Tanzania. The firm inked a non-binding Memorandum of Understanding (MoU) with Tanzania Electric Supply Company Limited (TANESCO) for the energy supply.
The MoU will see a 220kV transmission line constructed to support dependable, renewable, and low-cost grid power. The Mahenge Graphite Project’s enhanced Definitive Feasibility Study (eDFS) considered grid power connectivity to support the Company’s goal of a highly differentiated and sustainable operation.
The two associated will implement the project’s design, financing, construction, commissioning, and operation. The line will also supply power to nearby settlements, including the Ulanga District. It will run from Ifakara and extending to the Mahenge substation for a distribution network inside Ulanga District. A 33kV feeder distribution network will be built from the Mahenge substation to the Mahenge graphite project site.
Clean energy
Tanzania’s grid power output is currently 40% hydropower and 60% natural gas, with the share of hydroelectricity expected to increase. As a result, graphite from Mahenge is expected to have an extremely low carbon intensity compared to peers and one of the world’s lowest carbon footprints of any graphite project. Access to a clean, low-cost energy supply will also help Project economics by providing a sustained, low-cost base that drives a higher-margin operation.
“Grid power would provide a huge multiplier effect for the Mahenge Graphite Project by providing low-cost sustainable power, which should lock Black Rock in the bottom quartile of the cost curve; low carbon, which will differentiate its product in crucial consumer markets; and reliable power for the Ulanga and Mahenge areas, driving the win-win relationship developed under the government’s Framework Agreement and ratified by the Special Mining Licence. Critically, as we navigate the debt and equity finance process, investors should look at this outcome and gain confidence that Black Rock and Faru are focused on our long-term plan to deliver a world-class, sustainable and responsible graphite project at Mahenge,” Black Rock CEO John de Vries
