S Korea's POSCO International to invest $40 mln in Aussie-listed Black Rock Mining

Posco International

03/09/2024 12:38

Sept 3 (Reuters) - Australia-listed Black Rock Mining
 BKT.AX  said on Tuesday South Korean steel conglomerate POSCO
International Corporation  047050.KS  will invest $40 million in
the company to help it fund the development of its flagship
Mahenge Graphite Project.
    After the first tranche of the investment, POSCO's stake in
Black Rock Mining will increase from 10.1% to 19.99%, the firm
said in a statement.
    In May 2023, the graphite developer had already signed an
offtake agreement with POSCO to supply high purity graphite from
the Module 1 of Mahenge Graphite Project, which is located in
Tanzania.
    As a return for the investment, Faru Graphite Corporation, a
unit of the miner, will grant POSCO the future offtake rights
for the fines graphite production of Mahenge Module 2, when
built.
    Black Rock Mining said the investment remains subject to
various regulatory approvals, including one from the Foreign
Investment Review Board in Australia and the Fair Competition
Commission of Tanzania.

 (Reporting by Shivangi Lahiri in Bengaluru; Editing by Alan
Barona)
 ((Shivangi.Lahiri@thomsonreuters.com))