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 15 323 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. 

Potential Job Creation
As at April 2025, more than 70% of site-based roles were filled by local workers, with training and skills development programmes under way to expand the workforce and support regional economic development. Lindian is also working with local communities to create long-term opportunities through employment and procurement.

Net Present Value/Internal Rate of Return
The project has a pretax net present value, at an 8% discount rate, of $794-million and an internal rate of return of 99%, with a payback of less than two 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
First production is targeted for the first quarter of 2026.

Latest Developments
Lindian Resources has received firm commitments of A$91.5-million from institutional investors and approved a final investment decision (FID) to build the first stage of the Kangankunde mine.

The two-tranche equity raising, at 21c a share, was strongly supported by new domestic and international investors. The issue price represented a 6.7% discount to Lindian’s last closing price of 22.5c on August 15, but a premium to the company's recent volume-weighted averages.

With the placement completed, Lindian now has full funding in place to bring Kangankunde into production by late 2026. 

The placement follows Lindian’s strategic partnership with Iluka Resources, which is developing Australia’s first fully integrated rare earths refinery at Eneabba, north of Perth. Under the deal, Iluka will provide a A$20-million construction loan and has secured 90 000 t of Kangankunde concentrate under a 15-year offtake agreement.

Stage 2 expansion plans are also under way, with Lindian holding approvals to lift output to as much as 50 000 t/y. Proceeds from the placement will partly fund engineering work and infrastructure for the expansion, alongside increasing Lindian’s ownership of Kangankunde to 100%.

According to the feasibility study, Kangankunde will require preproduction capital of $40-million, which includes 12.5% contingency, making it one of the lowest capital cost rare earths projects under development. Average yearly free-on-board operating cost of $2.92/kg total rare earth oxides positions Kangankunde in the lowest-cost quartile of the global rare earths industry. 

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.