Proactive Investors - Run By Investors For Investors

Black Rock Mining signs second graphite offtake agreement

The agreement follows the recent release of the definitive feasibility study results.
two hands shaking
The offtake agreements are likely to support project financing discussions

Black Rock Mining Ltd (ASX:BKT) has signed its second offtake agreement for natural flake graphite from its proposed Mahenge Graphite Mine in Tanzania.

The agreement is with China-based Qingdao Fujin Graphite Company Limited to supply 15,000 tonnes per year for up to three years at pricing to be determined.

Notably, Qingdao Fujin focuses heavily on the small to mid-size battery market and produces anode product for customers across Asia and China.

READ: Black Rock Mining DFS values Tanzania graphite project at US$895 million

Black Rock’s CEO John de Vries said: “The signing of this offtake agreement with a key producer of anode precursor in China, reflects strong demand for our premium quality graphite flake and demonstrates the ongoing success of our product marketing strategy.

“The agreement with an established user of natural flake graphite resulted from our strategy of operating a large 90-tonne pilot plant to support engineering design and provide credible volume for market participants identified through a thorough and detailed segmentation and channel strategy.

“We are of the view that this agreement continues to add momentum to our mine development and financing activities."

Offtake agreements are likely to support project financing

This offtake agreement complements the first agreement executed with Heilongjiang Bohao.

Combined, the two offtake agreements could represent about 44% of proposed steady-state annual production from Mahenge.

de Vries  added: “This agreement is significant as the offtake is intended to supply Qingdao Fujin’s needs across a range of batteries, for automotive applications, consumer electronics, and energy storage.

“Success in this market segment builds confidence in Mahenge’s ability to supply premium quality anode precursors to the emerging EV market.”

View full BKT profile View Profile

Black Rock Mining Ltd Timeline

Related Articles

Platina’s scandium oxide sample
April 10 2019
Products derived from Platina’s scandium can produce master alloy material.
drill rig
March 07 2019
The company is now chaired by Dubai royal, His Highness Sheikh Maktoum Hasher al Maktoum, a Commercial Bank of Dubai board member.
Fifield project in NSW
January 11 2019
The company is awaiting assay data which is expected in January 2019.

© Proactive Investors 2019

Proactive Investors Australia PTY LTD ACN:132787654 ABN:19132787654.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use