(Ecofin Agency) - Africa could become the world’s biggest graphite supplier by 2026, surpassing China. According to Benchmark Mineral Intelligence, which made the forecast, most of the continent’s output by 2026 would come from Mozambique and Madagascar. Tanzania is also expected to hold a major role.

Black Rock Mining raised AU$10 million (US$6.5 million) to finalize preparations for the development of Mahenge in Tanzania, its first African graphite mine, where a final investment decision (FID) is still awaited. The Australian firm indicated that it raised the money through a share placement.

A few days ago, the CRDB Bank, a local Tanzanian bank, approved two credit facilities totalling $40 million, enabling Black Rock Mining to achieve its goal of securing $153 million in debt financing for the construction of the Mahenge mine.

In addition, Black Rock expects $40 million from South Korean group POSC, which it will get in exchange for shares. According to a feasibility study released in 2022, $222 million will be needed, initially, to develop the mine. 

"Several significant milestones aimed at minimizing risks await us, and this placement should provide the company with sufficient cash reserves to finalize loan and contract documentation before the FID, as well as to work towards completing a transaction as part of the partnership process where we aim to sell a stake in the project," commented Black Rock CEO John De Vries.

The Mahenge mine is expected to deliver up to 340,000 tonnes of graphite concentrate annually over 24 years. It will help better position Tanzania, and Africa, in the global graphite market. Indeed,  Benchmark Mineral Intelligence forecasts that the continent will take over China as the world’s top graphite supplier by 2026. According to the same source, 11.4% of global graphite production is expected to come from Tanzania by 2030, against 0.6% in 2022.