HIGHLIGHTS
- Black Rock has signed a mining services contract with TAIFA Mining and Civils Limited (Taifa) for an initial term of 3 years, subject to Final Investment Decision (FID)
- Taifa is a highly skilled and experienced mining contractor based in Tanzania
- The contract value for the initial 3-year term is US$37.9m, and is consistent with the estimated cost in the Mahenge eDFS Update released on the ASX in Oct 2022
- Signing the mining services contract is a key de-risking milestone for Black Rock and satisfies one of the conditions precedent for project lenders
Tanzanian graphite developer Black Rock Mining Limited (ASX: BKT) (Black Rock, BKT or the Company) is pleased to announce that its 84%-owned subsidiary, Faru Graphite Corporation (Faru) has signed a mining services contract (Mining Contract) with Taifa for the Mahenge Graphite Project (Mahenge or the Project).
Mining Services Contract signed with Taifa
Black Rock’s 84%-owned subsidiary, Faru has signed a Mining Contract with Taifa for Mahenge for an initial 3- year term, subject to FID. Under the terms of the contract, Black Rock also has the option to extend the contract term by an additional 2 years.
In line with local content requirements in Tanzania, Black Rock ran a tender process to select its preferred mining services contractor and is very pleased to award the contract to Taifa. The contract with Taifa has also been approved by the Mining Commission of Tanzania.
Taifa was founded in 1987 as a civils and earth-moving operation in Mbeya, Tanzania. It has since grown into the largest locally owned civils and mining contracting business in Tanzania. Taifa is one of the most experienced mining service providers in Tanzania and has a number of established clients such as the Williamson Diamond Mine, where Taifa provides services for the entire mining cycle, from drilling and blasting to excavation, loading and hauling. In addition, Taifa is currently operating significant contracts for Barrick Gold at its North Mara Gold Mine (a haulage contract and a TSF lift project) and at Bulyanhulu Gold Mine, where Taifa has been contracted to excavate a new box cut for an additional underground adit. Past clients include Anglo Gold’s Geita Mine, the Tulawaka Gold Mine and Buzwagi Gold Mine, where Taifa provided mining services from green field to close of the mine, at both mines.
Commenting on the Mining Contract, Black Rock CEO, John de Vries, said:
“We are very pleased to be locking in our mining contract with Taifa, which is one of the largest and most experienced mining contractors in Tanzania. We look forward to working with Taifa to deliver the Mahenge Graphite Project.
Importantly, signing the mining services contract satisfies one of the conditions precedent for lenders. This is a particularly exciting time as we start to assemble various workstreams including today’s announcement which brings us one step closer to the Final Investment Decision for Mahenge.”
This ASX release was authorised on behalf of the Black Rock
– John de Vries, Managing Director & CEO
