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. 

Lindian will produce a premium monazite concentrate at 55% TREO grade with no deleterious elements. Operating costs will be in the lowest-cost quartile globally, establishing it as one of the largest, most promising underdeveloped rare earths deposits in the world.

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
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
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 and on track for the fourth quarter of 2026.

Latest Developments
Lindian Resources has confirmed that the project remains unaffected by recent comments from the country’s leadership regarding potential restrictions on the export of raw minerals.

The company said on October 27 that it had been made aware of reports indicating that the Malawian government might not allow for the export of unprocessed minerals, but emphasised that it operated in full compliance with local laws and that its project fell within the exemptions outlined in the President’s Executive Order No. 2 of 2025.

According to the order: “This prohibition shall not apply to minerals that have been processed, refined, or value-added in Malawi in accordance with the laws and regulations governing the mining sector.”

Lindian noted that the Malawian government was aware of its plans to beneficiate material produced from Kangankunde, with the company intending to process raw resources into a concentrate before export. “

The company described the government’s stance as having been made “in good faith and for the good of the country", adding that it would continue to engage constructively with Malawian authorities and the broader mining industry.

Lindian also confirmed that its current exploration, environmental and community engagement activities at Kangankunde were continuing as normal, and that the project remained fully compliant with local regulations.

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.