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
Walkabout Resources has reported that shipments of equipment from China for its Lindi Jumbo graphite project have been suspended, pending the completion of the drawdown of $20-million in debt.

One of the conditions precedent for the drawdown of the debt is the provision of a standby letter of credit. The submitted letter had not been confirmed as per the loan requirements.

While Walkabout is confident that a replacement letter will be sourced, it has said that the process will require time to complete.

Lindi Jumbo has received short-term commitment from its major contractors to continue construction works; however, further shipments of equipment from China have been suspended until the final conditions precedent have been completed and the drawdown occurs.

Walkabout has said that it is in discussions with various contractors about the delay and how it might impact on their activities.

The company has noted that the shipping suspension will have a negative impact on the project schedule and that the full extent will only be determined once shipments resumed.

“The unexpected issues associated with finalising the standby letter of credit required for initial debt drawdown and the consequent shipment suspension are enormously disappointing, as the development of Lindi Jumbo is proceeding remarkably well and we were quite advanced in preparing for commissioning,” CEO Andrew Cunningham has said.

Key Contracts, Suppliers and Consultants
TNR (bulk earthworks civil engineering works contract); Yantai Jinpeng Mining Machinery (engineering, procurement and construction, or EPC); and Axis Group International (EPC oversight).

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