POSCO Partners with Black Rock Mining to Boost Graphite Production in Tanzania and Meet Growing Global Demand

2023-09-04 19:10:00

(Ecofin Agency) – With 82,000 tonnes in 2022, the South Korean POSCO is the leading anode producer outside of China. The company wants to more than quadruple this figure by 2030 and is increasing agreements with future graphite producers in Tanzania, a country that will supply more than 10% of the world’s supply by 2030.

South Korean giant POSCO has signed a new non-binding memorandum of understanding to acquire a 19.9% ​​stake or invest $40 million in Black Rock Mining. This is the announcement made on September 4 by the Australian mining company which specifies that this investment should help it develop phase 1 of its Mahenge graphite project in Tanzania.

In exchange for the financing provided, POSCO will be able to acquire part of the production of phase 2 of Mahenge. The largest anode producer outside of China in 2022, the company wants to increase its production from 82,000 tonnes last year to 370,000 tonnes in 2030. To this end, it has already signed purchase agreements covering the production of phase 1 of Mahenge graphite, graphite being the raw material for battery anodes for electric vehicles.

« We believe today’s announcement represents a strong endorsement of the promising future of the Mahenge Graphite Project. Confirmation of POSCO’s interest in Mahenge’s Module 2 also represents an important risk reduction step for the company», explique John de Vries, PDG de Black Rock.

While the two parties must continue negotiations with a view to signing a binding agreement, it must be remembered that POSCO’s interest in Tanzania is not insignificant. The East African country is seen as a future global graphite stronghold, with more than 10% of total supply by 2030, according to Benchmark Mineral forecasts.

Black Rock Mining is not the only company that interests POSCO. The South Korean group entered into a strategic partnership this year with the Australian EcoGraf, which is active on the Epanko graphite project, still in Tanzania. The two companies will collaborate to establish a global battery anode material supply chain in the country.

Emiliano Tossou

Read also:

01/06/2023 – Tanzania: with EcoGraf, the South Korean POSCO will invest in the local processing of graphite

26/04/2023 – By 2030, Tanzania is expected to produce more than 10% of the world’s graphite (report)


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