HomeEast AfricaWalkabout Resources signs graphite sales and purchase MoU

Walkabout Resources signs graphite sales and purchase MoU

The MoU calls for Georg H. Luh and Walkabout Resources to promptly commence commercial discussions on a confidential basis to negotiate the contractual sale and purchase of graphite, in the amount of between 10 000 and 12 500 tpa, across four series of purity and flake-size ranges commencing in 2018.

The parties will also work together in other areas of product marketing and development, specifically in the area of high value graphite products.

“Georg H. Luh is an established graphite industry player in Europe with an impressive track record of operating in the premium end of the graphite market,” says Walkabout Resources executive director Allan Mulligan.

“We are delighted to have established initial business relations with the company and look forward to growing the alliance forward.”

Graphite project background

Walkabout Resources holds 70% of the prospecting rights over 325 km2 on four contiguous exploration licenses within the highly prospective Mozambique belt.

The company’s Lindi Jumbo graphite project is situated in south-eastern Tanzania, approximately 200 km from the export port of Mtwara.  The company has taken the project from discovery in October 2015 to the completion of a highly robust definitive feasibility study (DFS) within 16 months.

The DFS, which was completed in February 2017, confirmed the project to be technically sound with excellent economic returns even at potential softening price regimes for premium graphite flake material.

The DFS was based on an annual production of 40 000 t of graphite concentrate with a high grade feed to the plant of < 300 000 tpa with a payback period for the project is less than two years.

Feature image credit: Walkabout Resources