Black Rock Mining Ltd. struck a three-year deal with Taihe Soar (Dalian) Supply Chain Management Co. Ltd. to supply up to 100,000 tonnes of natural flake graphite from the Mahenge graphite mine in Tanzania.
Under the terms, the company agreed to supply up to 37,500 tonnes in the first year, 80,000 tonnes the following year and 100,000 tonnes in the final year.
Pricing will be determined under the terms of a formal agreement to be signed 12 months after the execution of the off-take deal, and will be set quarterly with reference to market price for flake size and concentrate grade.
Black Rock earlier reached off-take deals to supply Mahenge's natural flake graphite to Heilongjiang Bohao Graphite and Qingdao Fujin Graphite Co. Ltd. The three agreements could cover approximately 85% of the mine's proposed steady-state annual output of 240,000 tonnes, according to a Jan. 7 release.
The company said it is now working to increase the mine's production target to over 300,000 tonnes per annum.