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 reported on December 10 that it had completed the final $10-million payment under its share sale agreement, securing the remaining 33% of Rift Valley Resource Developments and taking full ownership of the Kangankunde rare-earths project. The payment lifts Lindian’s interest from 67% to 100%, giving it full legal and beneficial control.

Lindian stated that the final tranche was originally due on first commercial production at Kangankunde or by July 2026, but Lindian elected to settle early. The company confirmed that all legal, tax and accounting due diligence requirements were completed ahead of the payment, ensuring compliance with transaction obligations and a smooth transfer of ownership.

Lindian agreed in August 2022 to acquire Rift Valley Resource Developments for $30-million, payable in four tranches over 48 months. It paid a $2.5-million nonrefundable deposit in August 2022, followed by $7.5-million in September 2022 after shareholder approval. A third tranche of $10-million in July 2023 increased its holding to 67%. The early settlement of the final tranche completes the acquisition.

The company said that consolidating 100% ownership provides direct control over one of the world’s largest rare-earth deposits under development, and aligns all operational entities as Stage 1 construction progresses and Stage 2 studies advance.

Executive chairperson Robert Martin has described the milestone as strategically important, noting that full ownership strengthens operational coordination and positions Lindian for first production at what he characterised as one of the sector’s most significant emerging projects.

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.