Graphite miner Walkabout Resources (ASX: WKT) is finding demand from Chinese buyers.

The company has entered into another binding offtake agreement to supply graphite to China from the Lindi Jumbo project in Tanzania — its second within a week.

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Shares in Walkabout were up more than 5 per cent in morning trade to 19 cents per share, and have now doubled from their December lows.

Filling the order book

This morning’s deal will see Walkabout supply graphite concentrate to Qingdao Risingdawn Graphite Technology Co. (QRGT), a producer of graphite pipes based in the Shandong Province of China.

Under the binding terms of the agreement, Walkabout will supply QRGT with 10,000 tonnes of flake graphite concentrate — equivalent to 25 per cent of Walkabout’s planned annual production.

It follows an offtake deal last week with the Inner Mongolia Qianxin Graphite Co (IMQG), a China-based graphite refining facility.

Under the terms of that deal, IMQG agreed to buy up to 20,000 of flake concentrate. So if commercial terms are finalised, the two agreements will cover around 75 per cent of Walkabout’s planned annual production for the first three years of its mining operation.

For the QRGT agreement, Walkabout said price details “remain commercially sensitive”, although “a suitable pricing mechanism was discussed and will be finalised during final negotiations planned for later this year”.

Walkabout was one of many Tanzanian graphite plays that came under pressure amid legislative uncertainty around changes to the country’s mining laws.

The company took a major step forward last August when it finally received its mining licence for the Lindi Jumbo project last August.

In other battery metals news today:

Piedmont Lithium (ASX:PLL) remains on track to commence production by early next year at its fully-owned lithium project in North Carolina, USA. The company has expanded its land position to 2,105 acres and will provide an initial mineral resource estimate later this month.

“As the only conventional lithium project in the USA, we have attracted considerable strategic interest,” CEO Keith Phillips said. The company has engaged in initial discussions with manufacturers across multiple sectors. Shares in Piedmont were up 7.7 per cent to 14 cents.
And Sayona Mining Limited (ASX: SYA) said it’s had some positive drilling results at its Tansim Lithium Project in Quebec, Canada. “The drilling program demonstrates Viau Dallaire pegmatite system is open in all directions, with potential for discovery of additional sub‐parallel hidden pegmatites,” the company said.

Shares in Sayona were unchanged at 17 cents.