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 signed a new amended binding sales, purchase and marketing agreement with high-value raw materials trader Wogen Pacific for the supply of all exported graphite production from its Lindi Jumbo graphite project.

The new five-year agreement replaces one signed with Wogen in 2019, for the full nameplate capacity of the mine.

The original agreement made allowances for a volume of Walkabout’s production, not already committed to other customers, to be sold to Wogen. Under the amended terms of the agreement, the full export production of Lindi Jumbo will be sold to Wogen for a minimum term of five years.

Wogen will distribute the product into the global market, drawing on its substantial expertise and resources in speciality commodities marketing. Existing offtake agreements with other customers will be renegotiated to reflect this new arrangement.

It is expected that Lindi Jumbo’s sales book will be more diversified and have greater exposure to shorter-term pricing than previously as a result of the new arrangement. The agreement also provides Lindi Jumbo enhanced access to supply chain financing, supporting the objective of operating a capital-efficient balance sheet.

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.