AMN - TANZANIA: Walkabout applies for Lindi Jumbo licence

Walkabout Resources has submitted a mining licence application to Tanzania's Ministry of Energy and Minerals for its Lindi Jumbo Graphite Project. The application has been prepared in compliance with the recently promulgated amendments to the country's Mining Act 2010.

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 in line with the new regulations due for publication and process.

Company directors remain confident of the award of a Mining Licence in compliance with the standard fiscal and regulatory requirements.

Walkabout holds 70% of the Lindi Jumbo project with an option to acquire the remaining 30% share. As soon as the regulations have been finalised and are enforced, further discussion regarding Tanzania's proposed 16% 'free carry' will be progressed.

Meantime, 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.

This EPC management area is designated for deferred funding loans under the Silk Road Initiative. The funding of other areas, such as shared infrastructure, tailings and waste storage, mining capital and the accommodation facility is under discussion with various potential investors.

At site, work on the Resettlement Action Plan continues and the program is well advanced and now moving to the negotiation phase.

Walkabout's directors are highly encouraged by the interest in the Lindi Jumbo project and its graphite products in China. Graphite prices in China have risen sharply in response to shortages that have occurred as the result of regulatory curbs being enforced upon the graphite sector in China.

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