Lindian puts the pedal down to develop Malawi rare earths project

Lindian Resources has made significant strides towards opening its flagship Kangankunde rare earths mine in Malawi.

The company says it is running ahead of schedule, as it looks to swiftly bring the low-cost critical minerals project into production.

Haul roads and a solar farm for the project are now underway and Lindian has filled five key positions to progress the site into its next development phase.

The mammoth Kangankunde project is progressing at an accelerated pace, despite continuing rare earths price weakness. Fortunately for the development, the project’s low-cost operations should make it profitable independent of price.

The company says its main access road has been completed ahead of schedule and the haul roads for pit one and pit two are under construction. The process plant area has been fully cleared, with rebar foundations laid and the first major concrete poured.

A custom solar farm to reduce diesel dependency is advancing, with foundations set and completion targeted in under a month.

Concurrently, a site security compound with fencing and access controls is nearly finished to ensure robust operational security.

Lindian still needs to sign some key contracts, including for design and construction, mining and power infrastructure. It has shortlisted three preferred tenderers for each.

The company has also hired a seasoned site leadership team, under construction manager Daniel Britz. It includes a senior process engineer to optimise the gravity-magnetic flowsheet, a construction superintendent, a project planner and a QA/QC superintendent. The company says the appointees bring extensive expertise in African mining projects.

The Kangankunde deposit has a world-class 261-million-tonne resource, going 2.19 per cent total rare earth oxide (TREO) and an ore reserve of 23Mt. The reserve grade comes in at an impressive 2.9 per cent TREO. Importantly, almost 20 per cent of that comprises the more lucrative magnet rare earths, neodymium and praseodymium.

Kangankunde’s economic fundamentals are compelling. With a minimal US$40 million (A$61.52M) pre-production capex and operating costs of just US$2.92 per kilogram TREO, it is placed in the lowest cost quartile globally. The project’s 55 per cent TREO monazite concentrate meets stringent Western market requirements.

The company says it still has a slew of financing proposals from which to choose, including from leading African and European commercial and investment banks, to fund construction. A US$50 million offtake and funding term sheet with Gerald Group and a US$30M loan from Ecobank Malawi are advancing towards a final investment decision.

With a low-risk flowsheet, strong ESG alignment through sustainable power and local employment, Lindian looks well-positioned to establish Kangankunde as a cornerstone rare earths supplier for the oncoming electrification revolution.

Is your ASX-listed company doing something interesting? Contact: matt.birney@wanews.com.au