Black Rock Mining Limited signed a non-binding Memorandum of Understanding (MoU) with Tanzania Electric Supply Company Limited (TANESCO) to collaborate on building a 220kV transmission line to the Mahenge Graphite Project and nearby settlements, including the Ulanga District.
The Mahenge Graphite Project’s enhanced Definitive Feasibility Study (eDFS) considered grid power connectivity to support the Company’s goal of a highly differentiated and sustainable operation. Faru Graphite Corporation Limited and TANESCO signed an MOU to create the infrastructure to support dependable, renewable, and low-cost grid power. The parties will work together to build a 220kV transmission line from Ifakara to Mahenge and an associated substation for a distribution network inside Ulanga District to supply power to Mahenge and the surrounding area.
Access to low-cost grid power in Tanzania will be a crucial differentiator for the Mahenge Graphite Project. Tanzania’s grid power output is currently 40 per cent hydropower and 60 per cent natural gas, with the share of hydroelectricity expected to increase. As a result, graphite from Mahenge is expected to have an extremely low carbon intensity compared to peers and one of the world’s lowest carbon footprints of any graphite project. Access to a clean, low-cost energy supply will also help Project economics by providing a sustained, low-cost base that drives a higher-margin operation.
According to Black Rock, it is looking into ways to move the power line construction forwards to coincide with Module 1’s first production. The Company is now in conversations with numerous parties to investigate finance for the power line infrastructure project with TANESCO, which will run concurrently and independently of the Mahenge Graphite Project.
Key terms of the MoU include:
- Identify and carry out relevant studies and surveys linked to project implementation;
- The project’s design, financing, construction, commissioning, and operation;
- Negotiate and sign required project implementation agreements;
- Construction of a 220kV transmission line and associated 220/33kV substations at Ifakara and Mahenge (Ndororo), with the line beginning in Ifakara and extending to the Mahenge substation;
- Construction of a 33kV distribution network within Ulanga District to supply power to Mahenge and the rest of Ulanga District;
- Building the 33kV feeder distribution network from the Mahenge substation to the Mahenge graphite project site; and
- Any other action necessary to the project’s implementation
Black Rock CEO John de Vries said grid power would provide a huge multiplier effect for the Mahenge Graphite Project by providing low-cost sustainable power, which should lock Black Rock in the bottom quartile of the cost curve; low carbon, which will differentiate its product in crucial consumer markets; and reliable power for the Ulanga and Mahenge areas, driving the win-win relationship developed under the government’s Framework Agreement and ratified by the Special Mining Licence.
“This MOU follows recent stakeholder discussions and presentations in Tanzania as part of a whole of Government workshop forum which focused on collaboration to achieve key outcomes for the Mahenge Graphite Mine operation,” Vries stated.
Vries added: “Critically, as we navigate the debt and equity finance process, investors should look at this outcome and gain confidence that Black Rock and Faru are focused on our long-term plan to deliver a world-class, sustainable and responsible graphite project at Mahenge.”
 with Tanzania Electric Supply Company Limited (TANESCO) to collaborate on building a 220kV transmission line to the Mahenge Graphite Project and nearby settlements, including the Ulanga District.){kind=link}