Black Rock Mining Ltd (ASX:BLK) has opened 29% higher on the key milestone that its Tanzanian-based consultant has finalised activities and has substantially completed the Mahenge Project Resettlement Action Plan (RAP) for the Mahenge Graphite Project.
The RAP is a well-understood process worldwide, including in Africa, and is used to assess land and property values as well as to support the relocation of people and properties.
It is designed to meet the International Finance Corporation’s (IFC) Performance Standards on Social and Environmental Sustainability and is a typically mandated condition precedent for debt funding and Mining Licences.
Shares up 29%
Shares jumped in early trade to 4.9 cents, which is almost 29% higher than the previous close.
Resettlement for Mahenge includes areas associated with Mdindo, Kisewe, Nawenge and Makanga villages.
At the completion of RAP field activities, the company has recorded a 98% acceptance rate.
The small number of remaining parcels with appeals have been recorded in detail and will complete a resolution process according to the IFC standards and the Government of Tanzania in-country legislation.
“Another significant milestone”
Managing director and CEO John de Vries said: “Completion of RAP fieldwork is another significant milestone for Mahenge - it is particularly pleasing to achieve this outcome on the back of being formally advised by the Tanzanian Government of the intention to initiate resolution of the structure and nature of the 16% Free Carried Interest.
“At this stage of the process, being able to secure a 98% acceptance rate and having 99% of participants willing to voluntarily relocate before arbitration, should be considered as community validation of our project’s Social Licence to Operate.
“As an industry, we observe that our ability to meet global standards of ESG to support Community and Social Licences to Operate is fundamental to delivering benefits to all stakeholders.”
“Socially responsible graphite”
De Vries added: “A successful RAP further differentiates Mahenge’s brand of clean and green graphite, to now include socially responsible graphite.
“In achieving this milestone, we have applied the same philosophy used in our engineering work, and that is a very disciplined approach with an overriding mindset to “get it right”.
“The very high acceptance rate is testament to the thoroughness and diligence of our Tanzanian management team and our consultants.
“Once the RAP process is completed, we have crystallised project compensation value.
“The current estimate is consistent with the projected capital cost estimated in the July 2019 eDFS.”
Government FCI negotiations
Once the data has been validated and disclosure conducted, the finalised Valuation Report will be submitted to the Chief Government Valuer’s office for approval before the payment inventory exercise.
Black Rock is also looking forward to beginning formal FCI negotiations with the Government to progress its debt negotiations, which will ultimately be one of the sources of funding for compensation.