THE newly signed Mahenge Graphite Project development agreement is expected to create over 500 direct and indirect jobs, impacting the local job market and accelerating electricity connection in the area.

Abdulmajid Nsekela, CRDB Bank Group CEO and managing director, said at a weekend briefing that the bank has signed a lending facility accord as part of a consortium of leading African financial institutions to support the project, managed by Faru Graphite Corporation.

The project's key components are the construction of a 220kV power line, connecting from the Ifakara substation directly to the project site, with the new agreement solidifying initial debt set at $153m.

There is an additional $26m in bank guarantee for the rehabilitation bond, bringing total financial commitments to $179m (790bn/-) for the entire project, he said.

CRDB Bank has a pivotal role in this accord as the joint mandated arranger, facility agent, onshore account bank and onshore security agent, he said, noting that the bank’s total commitment amounts to $66m.

This includes $20m for cost overruns, $20m for working capital and $26m for the rehabilitation guarantee, he elaborated, expressing the view that the creditor is deeply committed to supporting strategic projects that drive sustainable development and create lasting impact.

“Our involvement in the Mahenge Graphite Project demonstrates our unwavering belief in the potential of Tanzania and Africa at large. By partnering with leading institutions, we are not only funding a critical supply chain for battery minerals but also empowering local communities with jobs, infrastructure and business opportunities,” he stated.

“This project is testament to what can be achieved when we invest in Africa's future," he further noted, affirming that the consortium includes the Development Bank of Southern Africa (DBSA) and the Industrial Development Corporation (IDC), a South African development finance institution, which have committed $59.6m and $53.4mrespectively.

The combined financial support of $179m in debt facilities and the rehabilitation guarantee is crucial for de-risking the project, demonstrating the strong confidence of the participating banks to support sustainable development and economic growth, he declared.

John de Vries, CEO of Black Rock and majority shareholder of Faru Graphite Corporation, was enthusiastic about the project: "We are extremely pleased to have concluded our debt financing process for the Mahenge Graphite Project and to sign the facilities agreement with such high-caliber lenders.

“Today's announcement represents a major de-risking milestone for Black Rock. We look forward to collaborating with DBSA, IDC and CRDB to develop Mahenge for the benefit of all our stakeholders."

The Mahenge Graphite Project was exciting, promising significant economic and environmental benefits. By providing a potential supply of battery minerals (natural graphite), the project plays a crucial role in reducing carbon footprints through its key applications, he added.