Dar es Salaam. Posco, a South Korean steel giant, has signed a binding agreement to invest $40 million in Black Rock Mining Limited, significantly increasing its stake in the Tanzanian graphite developer.
The investment, set to be executed in two tranches, will enhance Posco’s involvement in Black Rock.
The first tranche involves a $9 million investment for 155.3 million shares at a price of 5.8 cents per share—a 10 percent premium over the 10-day volume-weighted average price.
This will raise Posco’s shareholding in Black Rock from 10.1 percent to 19.99 percent. The second tranche will complete the $40 million investment at the same price as other investors in the final equity raising to support the development of Module 1, with Posco’s stake rising to 19.99 percent.
According to a statement that The Citizen has seen, the funds from Posco’s investment will be allocated to the development of Mahenge Module 1, a significant component of Black Rock’s Mahenge Graphite Project.
In return, Faru Graphite Corporation Limited (Faru), an 84 percent subsidiary of Black Rock and the owner of the Mahenge Graphite Project, will grant Posco long-term offtake rights for the fines graphite produced from Mahenge Module 2 once it is developed.
The investment remains subject to regulatory approvals, including those from the Fair Competition Commission of Tanzania, the Foreign Investment Review Board (FIRB), and shareholder approvals. Additionally, confirmation that all necessary funding for Mahenge Module 1 is in place is required.
Black Rock CEO John de Vries expressed enthusiasm about deepening the strategic partnership with Posco, viewing the investment and offtake agreement as a strong endorsement of the Mahenge Graphite Project’s future.
“Posco’s commitment is a major milestone for the company, de-risking our funding strategy and boosting confidence among our stakeholders,” de Vries stated.
POSCO Holdings Inc, with a market capitalization exceeding $22 billion, is a major South Korean steel conglomerate with a rapidly expanding battery materials division. Its battery business, Posco Future M Co., Ltd, is a leading global producer of anodes and cathodes.
Posco International Corporation, a key trading arm of Posco Holdings, will manage the raw material procurement for the group.
Black Rock Mining, listed on the Australian Securities Exchange, holds an 84 percent interest in the Mahenge Graphite Project, located in Tanzania.
The company has already achieved significant milestones, including environmental approvals, mining licenses, and a resettlement action plan.
The project has seen considerable support from Posco including a previous $7.5 million equity investment and a $10 million prepayment facility.
In September 2024, Posco approved the $40 million equity investment and secured the offtake rights for Mahenge Module 2. The collaboration builds on a strategic alliance formed in June 2020.
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Tanzania Confirms Second Marburg Outbreak After WHO Chief Visit
Dar es Salaam — Tanzania’s President Samia Suluhu Hassan has declared an outbreak of Marburg virus, confirming a single case in the northwestern region of Kagera after a meeting with WHO director-general Tedros Adhanom Ghebreyesus.
The confirmation follows days of speculation about a possible outbreak in the region, after the WHO reported a number of deaths suspected to be linked to the highly infectious disease.
While Tanzania’s Ministry of Health declared last week that all suspected cases had tested negative for Marburg, the WHO called for additional testing at international reference laboratories.
“We never know when an outbreak might occur in a neighbouring nation. So we ensure infection prevention control assessments at every point of care as routine as a morning greeting at our workplaces.”Amelia Clemence, public health researcher
Subsequent laboratory tests conducted at Kagera’s Kabaile Mobile Laboratory and confirmed in Dar es Salaam identified one positive case, while 25 other suspected cases tested negative, the president told a press conference in Dodoma, in the east of the country today (Monday).
“The epicentre has now shifted to Biharamulo district of Kagera,” she told the press conference, distinguishing this outbreak from the previous one centred in Bukoba district.
Tedros said the WHO would release US$3 million from its emergencies contingency fund to support efforts to contain the outbreak.
Health authorities stepped up surveillance and deployed emergency response teams after the WHO raised the alarm about nine suspected cases in the region, including eight deaths.
The suspected cases displayed symptoms consistent with Marburg infection, including headache, high fever, diarrhoea, and haemorrhagic complications, according to the WHO’s alert to member countries on 14 January. The organisation noted a case fatality rate of 89 per cent among the suspected cases.
“We appreciate the swift attention accorded by the WHO,” Hassan said.
She said her administration immediately investigated the WHO’s alert.
“The government took several measures, including the investigation of suspected individuals and the deployment of emergency response teams,” she added.
Cross-border transmission
The emergence of this case in a region that experienced Tanzania’s first-ever Marburg outbreak in March 2023 has raised concerns about cross-border transmission, particularly following Rwanda’s recent outbreak that infected 66 people and killed 15 before being declared over in December 2024.
The situation is particularly critical given Kagera’s position as a transport hub connecting four East African nations.
Amelia Clemence, a public health researcher working in the region, says constant vigilance is required.
“We never know when an outbreak might occur in a neighbouring nation. So we ensure infection prevention control assessments at every point of care as routine as a morning greeting at our workplaces.”
The Kagera region’s ecosystem, home to fruit bats that serve as natural reservoirs for the Marburg virus, adds another layer of complexity to disease surveillance efforts.
The virus, closely related to Ebola, spreads through contact with bodily fluids and can cause severe haemorrhagic fever.
Transparency urged
Elizabeth Sanga, shadow minister of health for Tanzania’s ACT Wazalendo opposition party, says greater transparency would help guide public health measures.
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“This could have helped to guide those who are traveling to the affected region to be more vigilant and prevent the risk of further spread,” she said.
WHO regional director for Africa Matshidiso Moeti says early notification of investigation outcomes is important.
“We stand ready to support the government in its efforts to investigate and ensure that measures are in place for an effective and rapid response,” she said, noting that existing national capacities built from previous health emergencies could be quickly mobilised.
The situation coincides with leadership changes in Tanzania’s Ministry of Health, with both the chief medical officer and permanent secretary being replaced.
This piece was produced by SciDev.Net’s Sub-Saharan Africa English desk.
Source: allafrica.com
