Walkabout Resources Ltd (ASX:WKT) has made considerable progress in the construction of its Lindi Jumbo Graphite Mine in Tanzania with essential civil works now 97% complete.
Shipments of structural, mechanical and electrical equipment have been steadily arriving in Tanzania, with more than 95% of the equipment and materials now on-site.
August witnessed a significant milestone with the arrival of all pre-fabricated steel required for the screening and bagging building, amounting to more than 850 tonnes delivered in more than 35 truck movements.
All the Motor Control Centres (MCCs) crucial for the plant are enroute to Tanzania and once on-site, will be connected to the electrical circuits being installed.
The MCCs are pre-fabricated.
Taking shape
“The near completion of construction means the current focus is shifting toward planning for commissioning, plant ramp up, operational readiness and product sales and marketing,” Walkabout Resources chief executive officer Andrew Cunningham said.
“It is exciting to see Lindi Jumbo shaping up to be the outstanding graphite producer we knew it would be.”
Plant commissioning remains on track for the fourth quarter.
Site works
Concrete works at the Concentrator Building are now complete, with the steel building framework under construction.
This will pave the way for the installation of the remaining mechanical equipment, including the drum scrubber.
Within this building, a majority of the steel platforms have been installed, with focus shifting to the installation of electrical and piping circuits within the Crushing Circuit and Concentrator Building.
This swift progress of essential civil works has been further marked by an exemplary safety record on the site, where there have been no lost-time injuries for more than 600 days.
Installation of the building steel framework in progress.
In the Screening and Drying Building, the 28-metre-long rotary dryer is in position, allowing for the completion of outstanding concrete works and commencement of structural steelwork, pre-fabricated building framework erection, and mechanical equipment installation.
The Tailings Storage Facility (TSF) is also nearing completion, with the installation of the high-density polyethylene (HDPE) lining progressing smoothly.
All major earthworks related to the TSF are finished, with final trimming, drainage and civil work in progress.
Power is essential
The connection to the power supply is a critical component of the project.
While grid power has reached the site, the delivery of the contracted 33KV transformer is expected only in November.
To mitigate potential commissioning delays and reduce operating risks, the company has procured diesel generators at an additional cost of nearly US$1 million for backup power, which are expected to arrive next month.
Nevertheless, the availability of backup power ensures the plant will continue to operate even during unforeseen power outages, providing extra confidence in the project's stability.
Other operational readiness
The company initially considered a Build-Own-Operate-Transfer arrangement for its mining camp but has decided to build a temporary camp funded from existing sources.
A permanent camp will be constructed using operating cashflows in the first few years of operation, with no additional cost to the original budget.
Formal tenders are underway to outsource services such as laboratory, fuel and logistics, with essential staff hiring and onboarding in progress.
The EPC contractor Jinpeng has agreed to supply key staff post-commissioning for support and training.
The numbers
Fee negotiations for outsourced services are ongoing, and while some cost reductions are possible, they are not expected to be vastly different from those estimated in the 2018 definitive feasibility study.
With the back-up power and camp scope changes, the final estimated capital cost for the mine is US$34.5 million net of value-added tax.
Scope changes and delays due to project funding and the COVID-19 pandemic have been mitigated to about 4.2% of the forecasted final capex value.
“The availability of capacity under our senior debt facility has enabled the project to make scope changes to further de-risk and potentially lower the cost of future operations," Cunningham said.
Product marketing
Finally, the company has been engaging with its sales and marketing partner Wogen International to prepare for firm sales orders once production begins.
Extensive product testing has been undertaken over the past six months, with positive feedback received from potential customers.
Trial orders are expected in the next quarter, with specific shipments to be finalised by year-end.