Walkabout Resources Ltd (ASX:WKT) has crossed a milestone by submitting the mining licence application to the Ministry of Energy and Minerals, for its Lindi Jumbo Graphite Project in Tanzania.
The application has been prepared in compliance with the recently promulgated amendments to the Mining Act 2010 of Tanzania.
Currently, a moratorium on the award of mining licences is in force throughout Tanzania.
However, the application is expected to be processed administratively and then remain pending final amendment requirements pursuant to the new regulations due for publication and process.
Walkabout holds 70% of the Lindi Jumbo Graphite Project with an option to acquire the remaining 30% share.
As soon as the regulations have been finalised and are enforced, further discussion regarding the proposed 16% “free carry” will be progressed.
Project design progressing in China
The detailed design for the Lindi project is progressing in Yantai, China.
Walkabout is finalising fixed price procurement and construction agreements for the Chinese components of the process plant and equipment/services for mine construction.
The funding of other areas, such as shared infrastructure, tailings and waste storage, mining capital and the accommodation facility is currently under discussion with various potential investors.
Graphite prices in China have risen sharply over the last month in response to shortages that have occurred as the result of regulatory curbs being enforced upon the graphite sector in China.