South Korean steelmaker Posco will spend $7.5mn to acquire a 15pc stake in Tanzanian graphite developer, Black Rock Mining.
With this investment, Posco will gain the right to secure 100pc of the production from Black Rock’s Mahenge Module 1 plant, which is about 20,000-40,000mt of graphite fines. The companies will also work on a long term offtake deal once the transaction is completed. Additionally, Posco will also have the right to nominate a director to the board of Black Rock Mining.
In lieu of this, the Tanzanian miner will receive a pre-payment facility of upto $20mn as a funding towards the development of Mahenge Graphite Project. The formalities of this acquisition are expected to be completed by 31st March, 2021.
POSCO also recently signed a MOU with Saudi Aramco to construct an integrated steel plant in Saudi Arabia.