BlackEarth Minerals (ASX: BEM) is set to benefit from a recently-announced infrastructure spending deal between Madagascar and the World Bank that would provide key upgrades for a proposed logistics route.
The deal, totalling USD$534.9 million, will finance rehabilitation and paving of a 400km stretch of road that connects BlackEarth’s Maniry Project to the port at Tolagnaro, in a move that the company says provides potential to positively impact project capital and operating costs.
Speaking on the deal, BlackEarth Managing Director Tom Revy said: “BlackEarth is pleased to see such commitments from both the Madagascan Government and World Bank. This proactive approach to supporting both local and foreign investment in the area is certainly a win-win for all current and future stakeholders and reinforces the positive investment climate that exists in Madagascar.
“The upgrade of RN10 certainly has the potential to enhance safety on the roads as well as result in significant savings in operating (logistics-related) costs”
The upgrade of RN10 certainly has the potential to enhance safety on the roads as well as result in significant savings in operating (logistics-related) costs. It will now provide us with the option of using both the ports of Toliara and where we have already been granted export rights, at Tolagnaro”
Image: BlackEarth Minerals NLWorld Bank Country Manager for Madagascar Marie-Chantal Uwanyiligira added: “The World Bank has significantly ramped up its investments in the transport and connectivity sector in the past couple years because we firmly believe that better transport connectivity is key to unlocking Madagascar’seconomic and social development.”
BlackEarth’s 100%-owned Maniry Graphite Project is located in Southern Madagascar, and includes an Inferred Mineral Resource Estimate of 12.2Mt @ 6.05% Graphitic Carbon.
