Melissa Shaw reports that Australian company, Walkabout concluded a non-binding memorandum of understanding (MOU) with European graphite trading house Georg H. Luh. The MOU opens talks for the sale and purchase of between 10,000 and 12,500 tonnes of graphite per year. The companies will also work together in other areas.
The news follows the release of a definitive feasibility study (DFS) for Lindi Jumbo, as well as a maiden ore reserves report. Based on test work, Walkabout anticipates that about 50% of the graphite produced will be in the super jumbo or jumbo categories, and will come from three high-grade zones.
These zones can apparently be extracted with minimum contamination from lower-grade material and will allow us to achieve a high-grade feed to the mill which will be in excess of 17.5% Total Graphitic Content (TGC) for the first three years of the mine life, with the life of mine average mill feed grade being above 16% TGC.
Also acknowledged was that many graphite projects are under development in the world now, and said that could lead to oversupply in the market. However, he believes that demand will remain strong for the type of graphite that Walkabout has to offer.
Graphite demand is expected to be driven largely by the still-emerging electric car industry. About 50 kilograms of graphite is used in the battery of each electric car, and as these vehicles become more common the need for graphite is expected to grow swiftly.
Other graphite companies operating in Tanzania include Graphex Mining, which was granted a 10-year mining license for its Chilalo project in 2016. According to a feasibility study, it plans to produce 69,000 tonnes of graphite annually. Armadale Capital discovered high-grade graphite at its Mahenge Liandu project last year. Magnis Resources, Volt Resources and Kibaran Resources also hold graphite projects in Tanzania.
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