The first shipment of graphite concentrate from the Lindi Jumbo graphite mine in Tanzania is set to depart for Europe early this month, marking the emergence of a new global graphite mining jurisdiction.
Following the European shipment, further exports are planned for destinations in Asia.
Andrew Cunningham, MD and CEO of Australian company Walkabout, stated that demand for graphite from Lindi Jumbo is strong and fetching market prices.
“Our focus is on continuing to methodically ramp up production and product quality to meet this demand,” he said.
Pilot orders ranging from 20 to 80 tons are being regularly received and will be fulfilled with concentrate produced during the commissioning and ramp-up phase.
The company is increasing plant throughput as part of the ramp-up, aiming to achieve at least one-third of the nameplate production capacity by the end of July.
At full production, Lindi Jumbo will be the highest-margin graphite mine globally, Cunningham said. “Lindi Jumbo continues to impress and, at current estimated operating costs, is one of the lowest-cost producing mines in the world with one of the highest basket prices globally,” he stated.
When operating at nameplate capacity, the monthly costs of the mine are expected to be about $1.4 million to $1.5 million.
Despite exceeding 2019 definitive feasibility study (DFS) forecasts due to inflation, the mine will remain one of the lowest-cost operations worldwide.
Inflation has contributed to a 15% increase in mining costs compared to the 2019 DFS. Logistics costs are also 53% higher than anticipated, as most products will be exported from Dar es Salaam rather than Mtwara, which is closer to the mine. This will continue until vessel traffic at Mtwara increases beyond the cashew nut season.
The DFS is based on 40,000 tons per year of graphite concentrate, with a high-grade feed to the plant averaging 230,000 tons per year over a 24-year mine life.
