Posco International to Develop World’s Second-Largest Graphite Mine in Tanzania

Commercial Production to Begin in 2028
Supplying 60,000 Tons Annually for 25 Years

Posco International has begun the development of the world’s second-largest graphite mine by reserves. By establishing a supply network for graphite, a key material for electric vehicle batteries, the company aims to enhance the competitiveness of Posco Group’s secondary battery business and contribute to strengthening the supply chain for domestic mineral resource security.

Posco International held a groundbreaking ceremony on the 9th (local time) at the Mahenge mine in the Ulanga region of Morogoro Province, Tanzania. From left, Daeyoung Kim, Head of Central and Southern Africa Region at Posco International; Eunju Ahn, Ambassador of the Republic of Korea to Tanzania; John De Brice, CEO of BlackRock Mining; Adam Kigoma Malima, Governor of Morogoro Province, Tanzania; Anthony Mabunde, Minister of Minerals of Tanzania; Richard Crooks, Outside Director of BlackRock Mining; Nehemiah Kyando Metchetu, Director of the State-Owned Assets Authority at the Ministry of Finance of Tanzania; Boma Lavala, Chief Operating Officer of CRDB Bank Tanzania; Christopher Ellinger, Deputy Ambassador of the Republic of Korea to Kenya. Posco International

On October 9 (local time), Posco International announced on the 10th that it held a groundbreaking ceremony at the Mahenge mine in the Ulanga region of Morogoro Province, Tanzania. The event was attended by 100 officials, including Daeyoung Kim, Head of Central and Southern Africa Region at Posco International; Anthony Mabunde, Minister of Minerals of Tanzania; and John De Vries, CEO of Blackrock Mining.

The Mahenge mine is a natural graphite mine with reserves of approximately 6 million tons. The development is led by the Australian resource development company Blackrock Mining, with Posco Group participating as a strategic partner. Notably, this project is part of the Mineral Security Partnership (MSP) led by major countries such as the United States, South Korea, Japan, and the European Union.

Graphite is an essential material for the production of battery anodes, and China currently controls more than 70% of the global supply. As supply chain stability emerges as a global issue, major countries are seeking to reduce their dependence on China.

Recently, the U.S. Department of Commerce made a preliminary decision to impose a 93.5% anti-dumping tariff on Chinese graphite, effectively blocking Chinese graphite from entering the U.S. market. In this context, Posco International is focusing on the Mahenge mine as a core business to meet strategic demand.

Posco Group began participating in the Mahenge graphite mine development in 2021, when Posco Holdings invested 7.5 million dollars in Blackrock Mining. Posco International has strengthened its cooperation by signing a first-phase graphite supply contract for 30,000 tons per year in 2023, followed by a second-phase contract of the same scale last year.

Blackrock Mining plans to conduct a paid-in capital increase this year to reach a final investment decision (FID), and Posco Holdings currently holds approximately 7.45% of Blackrock Mining’s shares. Once the 40 million dollar investment contract signed by Posco International in September 2024 is fulfilled, Posco Group’s stake will increase to a total of 19.9%.

The Mahenge mine is scheduled to begin commercial production in 2028, and Posco International will receive approximately 60,000 tons of graphite annually for about 25 years. This graphite will be used in the production of anode materials by Posco Future M, raising the group’s self-sufficiency rate for secondary battery material raw materials.

A Posco International representative stated, “The development of the Mahenge mine is an important opportunity to expand our resource development capabilities in Africa. We hope it will strengthen the group’s competitiveness in the anode materials business, stabilize the global battery material supply chain, and further contribute to domestic mineral security.”