Modern Mining May 2019

MINING News

Walkabout initiates ‘early‑start’ programme

Emerging African graphite producer Walkabout Resources, listed on the ASX, has initiated an integrated international proj- ect ‘early-start’ to commence procurement, manufacturing and siteworks for the Lindi Jumbo graphite project. The project is located in south-east Tanzania approximately 200 km from the Port of Mtwara. The objective of the early-start programme is to advance the project construction process along its critical path while project funding is being finalised and negotiated. An agreement has been executed between Walkabout and Yantai Jinpeng Mining and Machinery Co (Jinpeng) to commence with primary and long lead equipment procurement and manu- facture for a down payment of US$0,5 million and a final payment of US$0,5 million upon delivery and approved ready for shipping. The project schedule has determined that the manufactur- ing of the milling and float plant amounts to significant periods of time within the project’s critical path, so the early start pro- cess of manufacturing these items directly affects the end date of the project. In agreement with stakeholders and local authorities for the area, the company has also made payments to a select group of land-holders and has attained access to areas of the ‘foot-print affected’ site for the purposes of commencing with early-start works at the mine site. Tanzanian earthworks and min- ing contract partner TNR has been contracted for the early-start siteworks programme. Walkabout announced the results of an enhanced Definitive Feasibility Study (DFS) on the project in March this year. The DFS was updated as a result of a substantial upgrade to the ore reserve. In the enhanced 2019 DFS, the mine life has increased from the 20 years estimated in the previous 2017 DFS update to 24 years. The mine – which will be an open-pit operation – will produce 40 kt/a of graphite concentrate at an operating cost (FOB Mtwara) of US$347/tonne, which translates to very high cash margins of more than US$1 000 (FOB) per tonne. The project delivers a high post-tax NPV 10 of US$197 million, a 9,4 % increase, and a robust post-tax IRR of 119 %, a 23,9 % increase. 

Entrance to the Lindi Jumbo site. The project is located in south-eastern Tanzania (photo: Walkabout).

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