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 awarded all major nonprocess infrastructure (NPI) contracts, with construction under way across multiple work packages.

The company says this marks a key execution milestone, materially improving project readiness ahead of targeted first production in late 2026. All NPI works are scheduled to be completed before processing plant commissioning, with contractors mobilised and fully integrated into the execution plan. The contracts were awarded within the capital parameters set out in the July 2024 feasibility study, reinforcing capital discipline and reducing execution risk.

The milestone follows completion of early works and mobilisation of the owner-operator mining fleet, supporting a smooth transition into full construction and operations. These developments strengthen schedule confidence and maintain momentum towards first production.

Awarded NPI packages include the mining workshop, administration building, fuel farm and explosives magazine, power infrastructure, tailings storage facility and site security. Delivery milestones extend through the third and fourth quarters of 2026, aligned with plant commissioning.

On power supply, Lindian has awarded the power line corridor contract, with Electricity Supply Corporation of Malawi collaborating on execution. The scope covers corridor clearing, foundations, pole installation, line stringing, transformer installation and connection to the site’s distribution network. The project will initially draw 3 MW of grid power, supplemented by solar and backup generation. Excavation and pole installation are scheduled to start on December 15.

Other infrastructure works are also progressing. The mobile workshop, designed to service the Komatsu owner-operator fleet, is 60% complete at earthworks level. Construction was due to start on December 20. Mining fleet deliveries are expected from December to mid-January 2026, with equipment-readiness activities advancing in parallel.

Construction of the main administration building is under way and will provide offices for management, technical teams, health and safety, IT, site consultants, a clinic and logistics, serving as the project’s central operations hub.

The explosives magazine, which includes bulk storage, security systems and regulatory-compliant infrastructure, is under construction, following completion of the access roads. A 9 km perimeter fence is also planned to support site security, with procurement under way and installation to be phased alongside site activity.

The fuel farm – comprising two 40 000 ℓ tanks, dispensing systems, bunding, fire protection and CCTV – will support construction and mining operations ahead of first production.

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.