Walkabout Resources Ltd (ASX:WKT) is set to become the largest producer of large flake graphite outside China when production at its Lindi Jumbo Graphite Mine in Tanzania comes online early next year.
The project is expected to bridge potential gaps when China’s temporary export control measures on flake graphite, spherical graphite and other products come into play from December 1.
Significantly, the company stands to benefit from any resulting premiums emerging from the Chinese restrictions as Lindi Jumbo’s production is currently unpriced.
Excitement in the air
“The construction teams in Tanzania continue to make significant progress and are delivering to schedule whilst also maintaining an impeccable safety record,” Walkabout managing director and chief executive officer Andrew Cunningham said.
“The rapid progress on site as we near commissioning is exciting to witness and is testament to the commitment of the many parties who have poured time and energy into developing the Lindi Jumbo Graphite Mine.
“It was an opportune time to welcome the entire Walkabout board on site in October who met with local stakeholders and contractors.
“The experience was incredibly fulfilling for all parties and we had an overwhelmingly positive experience in our community meetings, as we seek to live up to our local decree of ‘One Team, One Goal’.
“Coming online in early 2024 – soon after Chinese export restrictions come into play – will secure Lindi Jumbo’s role as the largest producer of large flake graphite for the expandable graphite market outside China (and) poised to provide the assurance of supply that currently hangs in the balance elsewhere.”
Progress update
All critical concrete works at the Lindi Jumbo processing plant have been completed, with attention shifting to minor infill work as well as the delivery of plinths for the containerised equipment, electrical transformers and other auxiliary equipment.
The company reached one million hours with zero lost time injuries over the last 675 days, a major achievement considering the multiple workstreams involved and an expanding workforce of more than 250 people on-site.
Operational planning is well advanced, including ensuring the established safety culture is embedded into future mine operations.
Other key developments include:
- The crushing circuit is being readied for potential early commissioning, with electrical installation and pre-commissioning QA/QC inspections in progress.
- Progress in the erection of the Concentrator Building framework stands at 85%, enabling the installation of key equipment.
- The Drying and Screening Building's central steel framework is at 70% completion, facilitating the installation of mechanical equipment.
- The Tailings Storage Facility is at 99% completion, with the installation of high-density polyethylene (HDPE) lining underway.
- Camp facilities are under construction in anticipation of the arrival of the containerised accommodation units in December.
- Permanent road access works are advancing to ensure uninterrupted access throughout the year.
View from the north of the Concentrator Building.
Powering of the plant
Efforts to establish a stable power supply, including a 5-megawatt stepdown transformer, are in progress, but the arrival of critical power supply equipment remains a crucial factor in wet commissioning.
Mechanical equipment, including burners, Rotex screens, piping and valves, is en route to Tanzania or awaiting loading in China.
Tenders for outsourced services are under consideration, and recruitment and onboarding are progressing, with a focus on commissioning preparations.
The company’s capital expenditure forecast remains within guidance at US$34.5 million net of VAT.
Stakeholder relations
The company's leadership and board members including Mike Elliott, Peter Finnimore, Phil Montgomery, Tony Allen and Andrew Cunningham have been actively engaged in observing the project's progress and attending governmental meetings.
Walkabout has also attended and presented at various conferences and functions in Australia and Tanzania and received positive feedback for Lindi Jumbo being the first major graphite project outside of China to receive debt funding for the development of a flake graphite project.
Board and project management team at the Concentrator Building site.
Community relations
A meeting with the leaders of three villages impacted by the Mine Relocation Assistance Program was organised to coincide with a visit from the Walkabout board.
They expressed appreciation for Lindi Jumbo's economic and social impact, particularly through employment opportunities.
Product sales
Sales and marketing partner Wogen International is in the process of gathering product orders, with most customers initially placing pilot orders for evaluation.
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