Walkabout Resources Dispatches First Shipment From Lindi Jumbo Graphite Mine

Walkabout Resources Ltd (ASX: WKT) has produced and shipped the first consignment of graphite concentrate from the Lindi Jumbo Graphite Mine in Tanzania.

The on-specification bagged graphite concentrate has been shipped to Dar es Salaam for sale to Wogen under an exclusive offtake agreement.

This first sale forms part of a larger order from an end customer in Europe.

“Outstanding outcome”

Walkabout Managing Director and CEO Andrew Cunningham said: “The successful production of on-spec, saleable product during the commissioning process at the Lindi Jumbo plant facility is an exciting milestone.

“To achieve our first concentrate shipment from site, at a time when customers are looking to shore up their graphite supply chains is a rewarding and outstanding outcome for the tenacity of our people, community, contractors and shareholders.”

Ramp-up

The plant throughput is increasing steadily to reach the planned production volume of 40Ktpa.

Issue of the Final Completion Certificate (FCC) by the EPC contractor (Jinpeng) will occur once the required throughput tonnages are achieved and sustained for a period of 48 hours.

Once signed off, the plant will be handed over to the operating team to continue the ramp up over the coming months.

A number of processing and maintenance specialists from Jinpeng will remain on site for as long as required.

Cost reduction achievements

The largest production cost for Lindi Jumbo is power.

While Lindi Jumbo has 4MW of installed diesel-generated backup power available it was not required at all during May.

Notably, having the plant run 100% on grid lowers the power cost by ~80%.

Graphite market

In mid-May, the US government announced the future imposition of a 25% tariff on Chinese natural graphite.

This has added to market concerns over security of supply chains after China imposed export restrictions for graphite.

Reflecting these developments, there appears to be a widening gap between Chinese domestic and ex-China prices.

Lindi Jumbo production is coming to market at a fortuitous time and remains fully exposed to resulting price increases

“We now have the opportunity to engage with more end-users as we continue to demonstrate we have a viable product and that we are serious contenders in development of non-Chinese graphite supply,” added Cunningham.

 

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