Walkabout Resources (ASX:WKT) has produced and shipped the first graphite concentrate from the Lindi Jumbo Graphite Mine in Tanzania.
The first consignment of on-specification bagged graphite concentrate has been shipped to Dar es Salaam for sale to Wogen under an exclusive offtake agreement.
Walkabout, which has a market capitalisation of $80.55 million, says this sale forms part of a larger order from an undisclosed customer and end user in Europe.
CEO Andrew Cummingham says to achieve the first concentrate shipment from site, during customers looking to shore up their graphite supply chains, is a rewarding outcome.
“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,” he says.
The company says the commissioning team is focused on increasing plant availability to run the entire circuit on a more continuous basis, while steadily increasing throughput to reach the planned production volume of 40,000 tonnes per year.
Once throughput targets have been met the team will turn its attention to the end-to-end optimisation of processing circuits to consistently achieve customer product specifications.
Walkabout adds that logistics efficiency is also a focus, with bagged on-specification product accumulated in the load out area ready to be transported to port. Currently, any product not meeting specification is reprocessed as determined by the Lindi Jumbo on-site laboratory.
Further, issue of the final completion certification (FFC) by the EPC contractor, Jinpeng, will occur once the required throughput tonnages are achieved and sustained for a 48-hour period.
Once signed off, the plant will be handed over to the operating team to continue ramping up activities over the coming months.
Walkabout says a number of processing and maintenance specialists from Jinpeng will remain onsite for as long as required.
In mid-May 2024, the US government announced the future imposition of a 25% tariff on Chinese natural graphite. As a result, market concerns have increased over security of supply chains after China imposed export restrictions for graphite.
Walkabout says reflecting these developments, there appears to be a gap between Chinese domestic and ex-China prices. That has also been the company’s experience in sales orders received to date.
The company adds Lindi Jumbo production is coming to market at a fortuitous time and remains fully exposed to resulting price increases.
Write to Aaliyah Rogan at Mining.com.au
Images: Walkabout Resources
