Posco International seals $40 million graphite deal with Australia's Black Rock

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Posco International seals $40 million graphite deal with Australia's Black Rock

Published: 03 Sep. 2024, 18:00

SARAH CHEA
chea.sarah@joongang.co.kr

Executives and officials from Posco Group, Australia and Black Rock Mining including Posco Holdings Chairman Chang In-hwa, far right, Korea's Trade Minister Cheong In-kyo, third from right, Madeleine King, Federal Minister for Resources and Northern Australia, fourth from right, Richard Crookes, chairman of Black Rock Mining take a photo after signing a $40 million deal Tuesday in Perth, Australia. [POSCO INTERNATIONAL]

Posco International sealed a $40 million deal with Australia's Black Rock Mining to source graphite, a key material for EV batteries, steelmaking and auto parts.

The deal was signed during the 45th meeting of the South Korea-Australia Economic Joint Cooperation Committee in Perth, Australia, attended by Trade Minister Cheong In-kyo, Posco Holdings Chairman Chang In-hwa, and Madeleine King, Federal Minister for Resources and Northern Australia.

Under the deal, Posco International acquired approximately 16.5 percent of Black Rock Mining, as well as the right to source up to 30,000 tons of graphite for 25 years.

With the investment from Posco Holdings, the group now owns 19.9 percent of Black Rock Mining.

The latest deal is an additional investment on top of a $10 million offtake deal Posco International inked last May with the mining company to source 750,000 tons of graphite.

Graphite is a key material in the production of anodes, one of four ingredients in EV batteries.

ASX-listed Black Rock Mining owns the Mahenge Project in Tanzania, which is known to have 6 million tons of graphite reserves, the world's second-largest deposit.

The mining firm aims to start the mining process within the year and start production in 2026.

The deal also includes Posco's right to sell the secured graphite to a third party, which it hopes contributes to raising national competitiveness in a race to secure critical minerals.

"Posco Group will actively use our varied business portfolio and global network to continuously discover businesses that can raise global competitiveness in key fields like steelmaking and secondary batteries, and build a stable supply chain that can contribute to national security," Posco Holdings Chairman Chang said.

BY SARAH CHEA [chea.sarah@joongang.co.kr]