Oct. 10, 2025 - Posco International announced Friday it has begun developing a graphite mine in Ulanga, southeastern Tanzania, home to the world’s second-largest graphite reserves, as part of its strategy to establish a fully integrated supply chain for key battery anode materials.

The groundbreaking ceremony for the Mahenge Mine was held Thursday and attended by Tanzanian Minister for Minerals Anthony Mavunde, Posco International’s Chief Regional Officer of the Africa and Middle East region Kim Dae-young and Black Rock Mining CEO John De Vries.

“This Mahenge Mine development marks a crucial step for Posco International in expanding its resource development capabilities in Africa,” said a Posco International official.

“We expect the project to strengthen Posco Group’s anode material business, contribute to a stable global battery material supply chain, and enhance Korea’s mineral sourcing security.”

From left: Kim Dae-young, chief regional officer for Africa and the Middle East at Posco International; Ahn Eun-ju, Korean ambassador to Tanzania; John De Vries, CEO of Black Rock Mining; Adam Kighoma Malima, regional commissioner of Morogoro; Anthony Mavunde, Tanzanian minister for minerals; Richard Crookes, director of Black Rock Mining; Nehemiah Kyando Mchechu, treasury registrar at the Tanzanian Ministry of Finance; Boma Raballa, chief commercial officer of CRDB Bank PLC; and Christopher Ellinger, deputy high commissioner of Australia to Kenya pose at the groundbraking event of Mahenge Mine in Tanzania on Thursday. (Posco International)

The Mahenge Mine, primarily developed by Australian resource firm Black Rock Mining, is estimated to hold up to 6 million tons of graphite.

Posco Group, the parent company of Posco International, joined the project in 2021 with a $7.5 million investment in Black Rock Mining. Its stake in the Australian firm will increase from 7.45 percent to 19.9 percent upon completion of an additional $40 million investment signed in September last year.

Once the mine begins operation in 2028, Posco International plans to secure 60,000 tons of natural graphite annually for the next 25 years. The graphite will be processed and refined into anode materials at Posco Future M’s production facilities in Korea.

The company said the Mahenge project carries strategic importance in diversifying its anode material sourcing away from China, which controls about 70 percent of global graphite supply.

The investment also aligns with the US push to curb the use of China-sourced materials in electric vehicle batteries. Washington recently issued a preliminary decision to impose a 93.5 percent anti-dumping duty on Chinese anode-grade graphite, which could push the total effective tariff to around 160 percent when combined with existing duties.

By expanding its own supply network, Posco Group aims to ensure a stable flow of graphite for battery and EV manufacturers in one of the world’s largest electric vehicle markets.