Mahenge Graphite Mine in Tanzania Goes Through Groundbreaking Ceremony
On 9 October 2025, the Faru Graphite Corporation held a groundbreaking ceremony at Mahenge #Graphite Mine situated in the province of Morogora in southeastern Tanzania, not far from the Ifakara station of #TAZARA. Faru Graphite Corporation is a JV between Australian Black Rock Mining (84%) and the Government of Tanzania (16%), with South Korean Posco as a long-term offtaker and indirect shareholder.
Since 2021, Posco (KRX: 005490) has injected USD 50 million in Black Rock Mining (ASX: BKT) in exchange for equity, and thus holds an indirect stake in the Mahenge mine. Posco also signed a contract with Black Rock Mining to secure 30,000 tonnes of graphite annually in 2023, followed by another similar contract for an additional 30,000 tonnes in 2024.
“This groundbreaking ceremony signifies that the Mahenge project has entered the full-scale implementation phase. Close cooperation with POSCO International made this achievement possible.”
Black Rock Mining CEO John de Vries
Following the groundbreaking in 2025, full-scale production of 340,000 tonnes per year is expected to be achieved by 2028. As per the supply and purchase agreement, Black Rock will deliver 60,000 tonnes of #graphite to Posco annually over the next 25 years. Posco intends to process the graphite ore at its Future M subsidiary.
The Korean Ambassador to Tanzania and the Australian Deputy High Commissioner also attended the ceremony. The Mahenge graphite mine is a flagship project under the Minerals Strategic Partnership (#MSP) which aims to enhance national security and diversifty the global supply chain for #CriticalMinerals.
“The development of the Mahenge mine is a significant opportunity for POSCO International to expand its resource development capabilities in Africa. We hope that the Mahenge graphite mine development project will contribute to strengthening POSCO Group’s competitiveness in the anode business, stabilizing the global battery material supply chain, and further enhancing domestic mineral security.”
Posco International Spokesperson
During his speech, Tanzanian Minister for Minerals Antony Mavunde underlined the strategic significance of the Mahenge project. With an estimated reserve of more than 200 million tonnes at 7.8% total graphitic carbon (TGC), the Mahenge mine if one of the largest of its kind in the world. During its expected lifetime of 25 years, the mine will sustain 900 direct and 4,000 indirect jobs.
In May 2025, a power supply agreement was already signed with TANESCO with the construction of a 220-kV transmission line from Ifakara to the Mahenge mine to bring power to the mining site. Compensation for land acquisition is also being finalized so that the access road can be built. Once these preparations are completed, the final investment decision (#FID) is expected to follow.
Over the four stages of the project, the Mahenge mine will necessitate a total Foreign Direct Investment (#FDI) of over USD 500 million. The financing is blended with a mix of loan and equity. Other than the equity investment by Posco, other commericals banks, such as DBSA, CRDB, and IDC, extended credit facilities amounting to USD 200 million.