PERTH (miningweekly.com) – Graphite developer Black Rock Mining’s Tanzanian subsidiary Faru Graphite Corporation has struck a conditional framework agreement with US-based cleantech graphite processing company Urbix.
Under the terms of the agreement, the two companies would collaborate on establishing a new supply chain for the US and European battery industry, which could potentially allow Black Rock to bring forward construction of the second module at its Mahenge graphite project.
The second module could be built concurrently with the first module, with Urbix providing or facilitating substantial pre-payment or equity support for exclusive offtake of all of the natural graphite fines from the second module.
“Signing this agreement with Urbix is potentially transformational in the context that we are developing an additional US and European option for the processing of Black Rock’s graphite into battery applications,” said Black Rock CEO John de Vries.
“Increased geographic diversity of our supply chain allows us to be closer to our customers without the need to directly develop, fund and qualify downstream processing facilities. Developing an option to step away from the conventional hydrofluoric acid route allows a low carbon and low chemical footprint brand to be developed in a market that is increasingly environmental, social and governance (ESG) differentiated.
“Importantly, Urbix’s technology will deliver significant environmental and economic benefits deploying our ESG footprint across the whole battery anode supply chain, further differentiating our offering from competing brands.”
De Vries said that the potential to concurrently execute Module 1 and Module 2 provided significant leverage to Black Rock through securing economies of scale early in the project’s life.
“Doubling the size of the initial project also approximately doubles our debt capacity, and combined with a substantial prepayment and/or equity support through Urbix, is expected to mean a similar company equity funding requirement to building Module 1 only.
“This agreement is complementary to our existing agreement with POSCO for Module 1 in that it supports access to funding directed at supply chain diversity not previously available. Being in a position to supply increased volumes of large flake is particularly beneficial in securing market share with Mahenge branded production a market that is increasingly short of large flake,” he said.