Posco to invest  million in Black Rock Mining in Tanzania

Posco to invest $40 million in Black Rock Mining in Tanzania

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: Samia Hands Over NBC’s 354m/ – Crop Insurance Compensation to Farmers Affected By Hailstorms
Tanzania Foreign Investment News
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Tanzania: Samia Hands Over NBC’s 354m/ – Crop Insurance Compensation to Farmers Affected By Hailstorms

President Samia Suluhu Hassan, has handed over a cheque of 354m/- from the National Bank of Commerce (NBC) as compensation to tobacco farmers, who were affected by hailstorms during the previous farming season in various regions across the country.

Handing over the cheque in Dodoma, the compensation is part of the crop insurance service provided by NBC in collaboration with the National Insurance Corporation (NIC).

Furthermore, President Samia has also handed over health insurance coverage to members of the Lindi Mwambao Cooperative Union based in Lindi Region, through the Farmers’ Health Insurance service provided by the bank in partnership with Assurance Insurance Company.

While visiting the bank’s pavilion at the Nanenane Agricultural Exhibition and being received and briefed by the bank’s Managing Director, Mr. Theobald Sabi, she said: “This crop insurance is one of the crucial solutions in ensuring farmers have a reliable income, without fear of challenges such as natural disasters, including hailstorms.

“I call upon all farmers in the country to make the best use of this important opportunity by accessing these kinds of insurance services. I also highly commend NBC and all the stakeholders participating in this programme.”

Elaborating further on the crop insurance service, the Minister of Agriculture, Hussein Bashe, stated that it will help to recover the loss farmers incurred, especially in various calamities beyond their control.

Citing them as floods, fires, and hailstorms, which have significantly affected the well-being of farmers and caused some to be reluctant to invest in the crucial sector, Mr Bashe added: “However, our President, this step by NBC is just the beginning, as this is the second year since they started offering this service, and the results are already visible.

“As the government, we promise to continue supporting the wider implementation of this service, with the goal of ensuring that this crop insurance service reaches more farmers.”

ALSO READ: NBC participates in TFF 2023/24 awards, promises to enhance competition

On his part, Mr Sabi said that the farmers who benefited from the compensations are from 23 primary cooperative unions in the regions of Shinyanga, Geita, Tabora, Mbeya, Katavi, and Kigoma.

He added: “In addition to these insurance services, as a bank, through this exhibition, we have continued with our programme of providing financial education and various banking opportunities to farmers, alongside offering them various loans, including loans for agricultural equipment, particularly tractors, to eligible farmers.:

At the NBC booth, President Samia also had the opportunity to be briefed on the various services offered by the bank to the farmers namely crop insurance and health insurance services.

There, the President had the chance to speak with some of the beneficiaries of the services, including the Vice-Chairman of the Lindi Mwambao Primary Cooperative Union, Mr. Hassan Mnumbe, whose union has been provided with a health insurance card from the bank.

Source: allafrica.com

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