Tanzania : Yantai Jinpeng on track for EPCM in Walkabout’s Lindi graphite project

The ASX listed Walkabout Resources Ltd has set the stage to award Yantai Jinpeng Mining Machinery Co. Ltd, from China, the contract for process plant in the Lindi Jumbo graphite project in Tanzania.

The emerging African graphite producer said, 28 June, to have reached a Heads of Agreement (HOA) with Yantai Jinpeng.

The Chinese private mid-sized engineering company will engineer, manage and build the Lindi Jumbo process plant and shared infrastructure package on-site in the Lindi graphite project in south eastern Tanzania.

Walkabout reported that EPCM service contract will include deferred payment option, as funding, by means of a fast-track application already underway, which provides access to funding provided through the Chinese Governments’ new 1 trillion US$ “Silk Road - One Belt, One Road” (Silk Road) initiative.

Commenting on this, Walkabout’ Executive Chairman Trevor Benson said : “This EPCM and deferred payment funding is an optimal outcome for our fast-tracked development strategy. This funding model should significantly reduce the Project capital required by the Company”.

The funding will be for up to 80% of the EPCM package which as per the definitive feasibility study includes the entire process plant and the shared infrastructure package, estimated to be more than 70% of total initial Project capital.

The ASX listed company is developing the Lindi jumbo graphite project under a fast-track project methodology and is required to contribute a minimum of 20% of the total EPCM Funding.

Already on June 20th, the company reported conclusion of a series of agreements to sell at least 30,000 tonnes per annum of a range of natural flake graphite products from the developing Lindi Jumbo mine to European and Chinese traders and end-users.

The agreements represent the selling of 75% of the initial production target of 40,000 tonnes per annum of Lindi mine.

Walkabout Resources currently holds 70% of four licences at Lindi Jumbo with an option to acquire the remaining 30% share.