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.

Following initial concentrate production, Lindian is progressing a Stage 2 expansion in parallel with Stage 1 development to increase overall production capacity. Stage 2 is targeting an additional 100 000 t/y of concentrate and is supported by an expanded mining licence footprint.

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 announced firm commitments on April 1, 2026, to raise about A$100-million through a single-tranche placement to institutional investors and strategic critical minerals funds. 

The company will issue about 133.33-million new fully paid ordinary shares at A$0.75 a share. 

Lindian has said the funds will be used to complete Stage 1 of Kangankunde to first concentrate production and cash flow, advance Stage 2 expansion, and complete integration of the Sareco mixed rare earth carbonite facility in Kazakhstan. The placement provides a base case funding envelope with no project financial indebtedness. Stage 1 at Kangankunde is fully funded to first cash flow without debt drawdowns.

Key Contracts, Suppliers and Consultants
None stated.

Contact Details for Project Information
Lindian Resources, tel +61 8 6401 4300 or email info@lindianresources.com.au.