Black Rock cements graphite supply deals

Black Rock Mining (ASX:BKT) has secured two three-year deals to supply 30,000 tonnes of large flake graphite concentrate each year.

The Tanzanian graphite developer has executed the offtake agreements with China’s Muhui International Trade and Qingdao Yujinxi New Material Co via its 84% owned subsidiary Faru Graphite Corporation.

On a day the broader market was in the red, the news pushed Black Rock’s share price up over 13% to close Thursday at an intra-day high of $0.06.

Black Rock will supply 15,000 tonnes per annum from its Mahenge Graphite Project to each buyer.

Muhui and Qingdao also have the option to purchase an additional 10,000 tonnes per annum of any uncontracted volume under each contract.

The initial three year contracts can be extended by a further two years at the buyer’s discretion.

Black Rock originally signed term sheets with Muhui and Qingdao in August 2021. 

CEO John de Vries says one of Mahenge’s key competitive advantages is the ability to produce a higher ratio of “high-value, high-quality large flake graphite products than most of the existing graphite mines in production”.

Write to Angela East at Mining.com.au 

Images: Black Rock Mining