Name of the Project
Kangankunde rare earths project.

Location
About 90 km north of Blantyre and 13 km south of Balaka, in Malawi.

Project Owner/s
Australia-based Lindian Resources.

Project Description
A feasibility study on the Stage 1 development of the project has confirmed a technically low-risk and economically robust project, with maiden ore reserves of 23.7-million tonnes at 2.9% total rare-earth oxides (TREOs) supporting a Stage 1 life-of-mine of 45 years. 

Stage 1 envisages average production of about 15 300 t/y of premium concentrate with 55% TREO grade, with low levels of radionuclides (thorium and uranium) and limited acid-consuming minerals. 

The premium concentrate will contain an estimated 8 400 t/y of rare-earth oxide (REO) and about 1 640 t/y of neodymium/ 
praseodymium. 

The unique mineralogy of the Kangankunde’s ore makes it amenable to relatively high levels of REO recovery, mainly through a physical process of gravity and magnetic separation. 

As a result, the project’s flowsheet only requires a small flotation circuit at the back end of the plant to reduce impurities such as sulphides.

The very strong economics of Stage 1 and the large resource endowment of the project, together with robust market demand forecasts, provide confidence for a potential Stage 2 expansion to significantly increase yearly production. 

Lindian intends to formally start a Stage 2 expansion study in 2024.

Potential Job Creation
The project will require more than 200 full-time equivalent site roles during the construction phase, and more than 100 full-time equivalent site roles during the operational phase.

Net Present Value/Internal Rate of Return
Stage 1 has an after-tax net present value, at a (real) 8% discount rate, of $555-million and an internal rate of return of 80%, with a payback of 1.5 years.

Capital Expenditure
Preproduction capital is estimated at $40-million, which includes 12.5% contingency, making it one of the lowest capital cost rare earths projects under development.

Planned Start/End Date
The development schedule is aiming to achieve funding confirmation in the third quarter of 2024, the start of site construction in the fourth quarter of 2024 and commissioning of the processing plant in the fourth quarter of 2025.

Latest Developments
Lindian Resources CEO Alwyn Vorster stepped down as CEO, effective February 28, after he and the board mutually agreed to conclude his fixed-term contract early.
This comes amid the continued advancement of the Kangankunde project, which is undergoing several key senior management changes as the company transitions into project delivery.

Vorster, who had been CEO since June 2024, was tasked to focus on advancing the feasibility study and structuring the project to prepare it for funding and construction.

The company will provide an update on the appointment of key leadership as it advances towards financing and construction start.

Key Contracts, Suppliers and Consultants
None stated.

Contact Details for Project Information
Lindian Resources, tel +61 8 6557 8838 or email info@lindianresources.com.au.