PERTH (miningweekly.com) – Graphite developer Walkabout Resources has been granted environmental approval for its Lindi jumbo graphite mine, in Tanzania.
The award of an environmental impact assessment (EIA) certificate was a prerequisite to the mining licence application, which will now be submitted to the Ministry of Energy and Minerals, Walkabout said on Tuesday.
The company expects to be granted a mining licence in the third quarter of this year.
“The awarding of the EIA is a major milestone in moving towards a mining licence and to attracting development funding,” said Walkabout executive chairperson Trevor Benson.
“The project can now progress along its planned development pathway in parallel with ongoing negotiations with potential offtake partners and securing development capital.”
A definitive feasibility study into the Lindi project estimated the project will cost $38.7-million to support production of 40 000 t/y of graphite concentrate over a 20-year period.
The project is expected to generate a life-of-mine revenue of some $1.25-billion and average earnings before interest, taxes, depreciation and amortisation of $47.7-million, with the pretax net present value estimated at $323-million and the pretax internal rate of return estimated at 96.4%.