Name of the Project
Lindi Jumbo graphite project.

Location
South-east Tanzania.

Project Owner/s
Walkabout Resources.

Project Description
The Lindi Jumbo project has mineral ore reserves of 5.15-million tonnes grading 17.9% total graphitic carbon for 987 000 t of con­tained graphite.

The mine life has increased from 20 years in the 2017 definitive feasibility study (DFS) to 24 years in the enhanced DFS to produce 40 000 t/y of graphite.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
The pretax net present value has increased from $302-million, at a 10% discount rate, in the 2017 DFS, to $335-million in the enhanced DFS. The project’s pretax internal rate of return is estimated at 142% in the enhanced DFS, from 108% in the 2017 DFS. The payback period is less than two years.

Capital Expenditure
Preproduction capital costs have decreased from $29.7-million in the 2017 DFS to $27.8-million in the enhanced DFS.

Planned Start/End Date
The construction schedule has not been modified in the enhanced DFS, as commissioning can be achieved 9 to 12 months after project-start funding has been received.

Latest Developments
Recent changes in Tanzanian mining legislation, combined with the dispute between gold producer Acacia Mining and the Tanzania government, have created apprehension among investors, particularly in terms of investment in greenfield projects.

However, Walkabout Resources intends to demonstrate to international investors, through its Lindi Jumbo graphite project, that investing in the country can be safe and can present significant growth potential.

However, the company notes that it has been difficult to convince international investors to invest in the project.

A key problem is that the changes in legislation are poorly understood by the international market, particularly the financial markets. This has added to the difficulty in securing funding and has been exacerbated by the graphite industry “being misunderstood”, as “graphite pricing is seen as a very opaque market”, Walkabout director Andrew Cunningham has emphasised.

“Moreover, investors are waiting for the first mover. They want to see the first project funded and developed, and then they will be ready to invest.”

While the short-term goal is to secure debt funding to progress the project to production, Walkabout’s long-term goal is to establish itself as the “go-to company” in the large-flake natural graphite market.

Cunningham has noted that processing facilities to manufacture spherical graphite in the battery storage market are currently planned or under construction outside of China, with the interest in graphite applications in countries other than China having created new markets.

“We have two binding offtake term sheets with graphite companies in China, particularly for the larger flakes, and a binding marketing, distribution and sales agreement with Wogen Pacific Limited – an international minerals trader. Combined, these agreements cover the sales of our planned annual production . . . we also have nonbinding agreements with graphite companies and traders in China and Europe.”

Cunningham says Walkabout needs to diversify its offtake by establishing a bigger distribution list of its product to companies in various countries, rather than supplying to only one customer.

Nonetheless, he has assured that the project is fully permitted and “ready to go”.

Cunningham has noted that Walkabout has been transparent with the Ministry of Mines and the Mining Commission in terms of the project and its challenges, including securing funding, which has resulted in open conversations regarding legislation.

Key Contracts, Suppliers and Consultants
None stated.

Contact Details for Project Information
Walkabout Resources, tel +61 8 6298 7500 or email admin@wkt.com.au.