He added: “In many cases substantial elements of most modern metallurgical concentrators are either delivered in part of in full though some form of offshore procurement. We see this as an opportunity take the concept of offshore supply chain to its natural extent and to establish an East meets West outcome by combining the best of Chinese supply chain and delivery capability through Yantai, and Australian innovation and delivery focus through CPC. In addition to Yantai’s reputation of delivering successful graphite plants through out China, we are excited to be aligned with Yantai’s brand. Yantai’s endorsement of Black Rock’s quality product through this agreement, provides an important new channel to market through our association with a proven capacity to deliver quality graphite to the Chinese offtake market.”
In a deal type that looks to be becoming more common, combining technology supply and involvement in project finance, Tanzanian graphite developer Black Rock Mining Ltd has announced the signing of a Strategic Cooperation Agreement with Yantai Jinyuan Mining Machinery Ltd, part of the larger Yantai Jinyuan Group. The Strategic Cooperation Agreement commits both parties to work together with a view to Yantai supplying process plant machinery and related infrastructure for Black Rock’s 100% owned Mahenge graphite mine.
In addition, Yantai has committed to working with Black Rock to secure up to $40 million in project finance from Chinese groups including the Government import export credit agency. “Yantai is a vertically integrated processing equipment supplier with capacity to deliver from processing equipment to full turn key project delivery of entire metallurgical projects. Yantai operates its own metallurgical testing facility and has access to pilot plant facilities that support its unique graphite IP. Yantai has industry leading experience in delivering graphite process plants.”
Yantai’s recent graphite projects include the full delivery of BTR’s 80,000 t/y of graphite concentrate, Heilongjiang Baoan Mining Co, graphite plant in Heilongjiang Province. Build Operate Transfer (BOT) contracts have been delivered in China and Tajikistan. The BOT delivery model aligns with Tanzania’s new Mining Code, and provides for training and skills transfer to Mahenge Resource’s Tanzanian operations team, who will assume management responsibility on completion of the performance test.
Black Rock’s CEO John de Vries commented: “Securing Yantai as our process plant construction partner is a major step in the delivery of our 100% owned Mahenge Graphite Mine. Yantai enhances our diligent technical work program of the Pre-Feasibility Study, pilot plant, and the Definitive Feasibility Study with a proven engineering and delivery capability. Mahenge’s planned production rate of 3,000 t/d fits well within Yantai’s experience. In addition to a best in class delivery capability, Yantai also establishes our financing pathway and opens a further channel to market for product placement though their reputation for de livering quality graphite projects.”
