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Urbix, Faru Graphite seal framework agreement for Mahenge graphite project in Tanzania

US-based Urbix and Faru Graphite, Black Rock Mining (BKT) have inked a conditional framework agreement for material from Module 2 of the Mahenge graphite project in Tanzania.

According to the deal, Urbix will offtake 7500 dry metric tonnes (dmt) of -100 natural flake graphite fines from Module 2 in the first year, while the second year 10,000 dmt, and for the remaining term, it will purchase 15,000 dmt.

Black Rock expects that after the ramp-up period, it will be able to produce up to 30,000 dmt per annum of the relevant product. However, the agreement is conditional on Urbix providing a “substantial” prepayment or equity to secure offtake for Mahenge Module 2, which is the second of four production modules.

Geographic diversity

“Urbix has technically confirmed that the Black Rock graphite resource is of a quality perfectly suited to EV battery supply chains and it is excited to establish these initial steps toward a collaboration with Black Rock and its customers,” said Urbix CEO Nico Cuevas.

On their part Black Rock Mining CEO John de Vries described the agreement as potentially transformational.

“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. Importantly, Urbix’s technology will deliver significant environmental and economic benefits deploying our environmental, social, and governance (ESG) footprint across the whole battery anode supply chain, further differentiating our offering from competing brands,” said Mr de Vries.

The companies initially signed a memorandum of understanding in July 2021 to potentially work together to independently supply ESG-friendly anode material to meet the US demand.

 

 

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