Walkabout Resources will source these natural flake graphite products from the developing Lindi Jumbo mine in Tanzania to European and Chinese traders as well as end-users.
The agreements make provision for the negotiation of binding sales and purchase agreements, including certain exclusivity arrangements, to be finalised before the end of 2017 and for deliveries to commence during 2018.
[quote]All Agreements call for firm sales terms with pricing mechanisms and specifications to be finalised by the end of 2017.
“These agreements are a significant step forward in providing evidence as to the demand for the Lindi Jumbo Project premium high grade and large flake graphite products and are key to finalising the current funding proposal for the development of our project,” says Walkabout Resources executive chairman, Trevor Benson.
“Having just returned from China, where company executives finalised these agreements I am confident that all quality product from our project at Lindi will be produced and contracted for sale.”
Walkabout Resources’ stated intention for the target market of Lindi Jumbo graphite is the expandable graphite market. This market is expected to grow significantly as the global economy emerges from low growth rates and as the electric battery storage market sees increased demand.
For this reason the Walkabout Resources has sought first to align itself with existing operators in the expandable graphite market and form strategic, long term marketing alliances. These commercial relationships will leverage existing market networks and contribute to improved product development and expansion opportunities.
New product development with specific application in fire retardants and building materials for expandable large flake graphite combined with a material swing away from expensive synthetic graphite products to natural, high purity flake graphite give the Walkabout Resources a high level of confidence that the market in China and Europe remains robust and that demand tension for quality, large flake graphite is returning and will continue to grow.
Walkabout Resources’ premier flake concentrate has been in circulation for downstream processing test-work for some time and is becoming recognised within the graphite market in China and Europe.
It has become evident that the product is highly sought after and in demand as production for large flake from existing Chinese graphite mines diminishes.
The signing of these three discrete commercial product marketing agreements marks an important milestone for the Walkabout Resources with a validation of the Chinese and European market recognition of the quality of the Lindi Jumbo range of products.
All of the Agreements now in place are with well entrenched graphite industrialists that have developed established networks in the industry. This will place the Lindi Jumbo product as an integral part of the expandable and speciality product graphite market.
Feature image credit: Walkabout Resources
(Walkabout Resources advanced its Lindi Jumbo graphite project from discovery to DFS completion in 16 months.)