Aug. 1, 2022 - Tanzanian graphite developer Black Rock Mining Limited (BKT: ASX) (Black Rock or the Company) is pleased to announce that its 84% owned Tanzanian subsidiary, Faru Graphite Corporation (Faru), has commenced initial resettlement activities for its agreed Resettlement Action Plan (RAP) at the Mahenge Graphite Project. 

Background 

As part of project development activities, Black Rock has agreed to acquire land proximal to mining operations. This has been well communicated to all stakeholders as part of ongoing community and Environmental, Social and Governance (ESG) initiatives. Black Rock previously finalised field activities with Project Affected Persons (PAPs) associated with the Mahenge RAP (refer ASX Announcement 11 May 2020). 

Black Rock’s RAP program was completed in accordance with Tanzanian National Environmental Management Council guidelines and is legislated under the Environment Act of 2004, Mining Act of 2010, Land Act No.5 of 1999, Land acquisition Act of 1970 and Valuation and Valuers Registration no.7 of 2016. The process is designed to meet the International Finance Corporation’s (IFC) Performance Standards on Social and Environmental Sustainability and Equator Principles (EP) and is a typically mandated condition precedent for debt funding and Mining Licenses. 

Resettlement Action Plan Compensation 

Black Rock, via Faru Graphite Corporation, has commenced the first tranche of the compensation process with PAPs who will be compensated, where appropriate, for the transition to better quality properties with vastly improved amenities. The initial payment will be $US1.8m and covers priority areas required for the mill, dry tailings storage and open pits for planned Modules One and Two. The total compensation package is US$7.9m including Top Ups required to meet IFC Performance Standard 4 and EP2 (Social Impact) and EP5 (Stakeholder Engagement) standards.

The resettlement process is expected to take up to 90 days, after which Faru will be able to access ground for the potential start of an early works program. The Company is continuing to progress the project financing process and sees the commencement of multilateral compliant resettlement compensation as a positive step toward completing financial closure ahead of a Final Investment Decision.

Commenting on the commencement of resettlement compensation, Black Rock CEO, John de Vries, said:

“Following our recent announcement regarding the Board and executive leadership of Faru Graphite Corporation, the Company continues to put in place the elements needed to progress a debt process, to support of development of the Mahenge Graphite Project. 

It is very pleasing to commence the RAP compensation process after a very detailed planning process spanning several years of proactive and in-depth stakeholder engagement. This marks the start of a new and exciting journey to production. I commend all who have worked alongside us through this process and express my personal thanks for the effort you have put in. 

Being able to deliver this RAP compensation process through our joint venture company, Faru Graphite Corporation, strongly highlights the transformative environment in Tanzania since the Company negotiated our Framework Agreement in December 2021.”