Sep. 7, 2022 - Tanzanian graphite developer Black Rock Mining Limited (ASX:BKT) (Black Rock or the Company) is pleased to announce that a new Special Mining Licence (SML) 676/2022 has been awarded for the Mahenge Graphite Project (Mahenge), as agreed in the Framework Agreement signed with the Government of Tanzania on the 13th of December 2021.

Special Mining Licence Overview 

The SML for Mahenge, along with the exemptions granted, was reviewed and approved by Cabinet of United Republic Tanzania (Government of Tanzania), which comprises the President, Vice President, President of Zanzibar, Prime Minister and all the Ministers. The SML awarded covers an area of 35km2 (see figure 1) which has been granted to Faru Graphite Corporation (Faru), the Joint Venture (JV) company established to develop the Mahenge Graphite Project. Faru is 16% owned by the Government of Tanzania and 84% owned by Black Rock via its wholly owned UK subsidiary company, Mahenge Resources Limited (UK). The SML is valid for 26 years, up from the 10 years attached to the existing Mining Licence.

In addition, the existing approved Environmental Permits and Resettlement Action Plans and operating permits granted to Mining Licences 611 and 612 held by Black Rock’s wholly owned Tanzanian subsidiary Mahenge Resources Limited, will be grandfathered and unified under the new SML.

Black Rock has also been granted an exemption from the provisions of the Mines Act 2017 requiring SML developers to issue 5% of stock to local interests and listing of 30% of stock on the Dar es Salaam Stock Exchange.

Black Rock MD and CEO, John de Vries said: 

“The awarding of a new SML for the Mahenge Graphite Project area provides permit coverage for the entire mining operation, and importantly confirms the Tanzanian Government’s commitment to seeing the Mahenge Graphite Project advanced into production.

This is an important milestone for Black Rock and represents the final key regulatory hurdle, derisks our financing process and enables commencement of construction. 

The Company is now focused on progressing the project development financing process alongside it’s customer and project execution activities.”