Walkabout Resources Ltd (ASX:WKT) will enhance its ESG credentials by reducing the use of diesel at Lindi Jumbo Graphite Mine in southeast Tanzania with the Tanzanian Electrical Supply Company Limited (TANESCO) to supply grid power.
A newly-erected powerline will be extended from the village of Matambarale to the Lindi Jumbo mine site and this work is due for completion next month.
This will make grid power available for the construction of the processing plant, for peripheral mining infrastructure and the accommodation camp.
“Perfect time” in schedule
Walkabout Resources’ CEO Andrew Cunningham said, “The willingness by TANESCO to supply grid power to site, and the rapid pace that they doing this comes at a perfect time in the project construction schedule.
"With the majority of the power in Tanzania supplied through hydro and gas power stations, this further enhances the company’s ESG credentials by replacing a component of the diesel-powered electricity on-site and our commitment to be the supplier of choice of responsibly sourced natural flake graphite.”
For the last two years, TANESCO has been rapidly extending the national grid network to the more remote areas and villages in Tanzania.
Extended to mine site
During September Walkabout management met with local and regional TANESCO management teams to discuss the possibility of extending the powerline, that was then planned to be extended to the village of Matambarale. This will greatly improve the living standards of the local community.
Tanesco has now agreed to an additional extension, at its cost, of the powerline from the village for a further three kilometres to the Lindi Jumbo Graphite Mine.
Following site visits to determine the optimal route layout, and with the completion of the powerline to Matambarale, work will start immediately and completion and supply of electricity to site is planned before the end of the year.
Use of grid power
Walkabout's planned base case was to supply diesel power to the entire Lindi Jumbo mine and supply of the TANESCO grid power will replace a portion of the base case power supply.
It will be used for peripheral infrastructure including the water supply borefield, Tailings Storage Facility, explosives magazine, fuel supply, accommodation camp, mining workshops and other shared infrastructure.
Work is underway to enable the integration of the grid power with the planned on-site power generating facility to be installed.
Possibility to lower costs
Supply of grid power to site at the start of the construction of the processing plant has the possibility to lower the construction and future operational costs.
While limited to 1Mw of power, the cost per kilowatt-hour (kW h) to be supplied to Lindi Jumbo is priced well below the planned alternatives.
TANESCO is a parastatal organisation that generates, purchases, transmits, distributes and sells electricity to Tanzania mainland.
The vast majority of its power generation and supply is through hydro and gas, with plans to further increase this through the Julius Nyerere Hydropower Station, which is under construction across the Rufiji River in eastern Tanzania. The power station is expected to have an installed capacity of 2,115 megawatts.
Hybrid plant options
Walkabout is also engaging further with various specialist service providers in regard to the Build, Own, Operate and Transfer (BOOT) option for the supply of a hybrid powerplant alternative (diesel, solar ± batteries) to the mine.
This can possibly replace the planned company supplied diesel powerplant and works hand-in-hand with the ESG objectives of actively measuring and reducing the operational carbon footprint of the mine.