December rare earths production debut looms for Lindian in Malawi

ASX 300-listed Lindian Resources has the pedal to the metal at its Kangankunde rare earths project in Malawi, with construction hitting key milestones as it heads towards first monazite concentrate production in December.

Kangankunde’s sheer scale has captured global attention, with the project considered one of Africa’s most significant rare earths deposits. It hosts a massive 261-million-tonne resource grading an impressive 2.19 per cent total rare earth oxides (TREO). Within that inventory is a high-grade core of 26 million tonnes at a hefty 3.7 per cent TREO, earmarked as the initial feed for the stage-one plant.

The company says its construction and operational readiness activities are progressing on multiple fronts. Structural steel installation in the plant’s wet high-intensity magnetic separation and magnetic gravity separation areas is now 90 per cent complete. The installation of shaking tables is 80 per cent done, while the crucial regrind mill has been installed and piping is being laid.

On the power front, the 33-kilovolt overhead transmission line has now been commissioned through to the transformer yard. Both of its 1250 kilovolt-ampere plant transformers have passed factory acceptance testing in Malawi and are back on site, ready to be fired up in the first week of November. Lindian says this will allow time for motor testing and electrical commissioning ahead of introducing the first ore to the plant.

While construction pushes ahead, mining operations have continued to swell run-of-mine (ROM) stockpiles. The company says it now has 149,000 tonnes of ore on the ROM pad, up 19 per cent from the 125,000 tonnes held in September. Mining has also moved to the pit’s upper levels, with drilling underway from the top of the hill to open up additional mining faces.

Lindian executive director Zac Komur said: “Kangankunde is in the final stretch of construction. Our target is clear: first monazite concentrate in December. The plant is taking shape, ore stockpiles are growing and our focus is on completing the remaining work and commissioning safely. Every milestone brings us closer to becoming a rare earths producer.”

Lindian’s push to become Africa’s next rare earths producer is playing out against a backdrop of intense global competition for the critical minerals. Rare earths have become a focal point of supply chain security, with the International Energy Agency warning that industries from automotive and defence to electronics face significant exposure to Chinese supply constraints.

This has sparked a flurry of dealmaking, with rare earths accounting for more than nine per cent of global mining and metals transaction value in the first half of this year. Major financing and acquisitions have been seen in Australia, Brazil and the United States as the West tries to build out alternative supply chains.

Notably, stage one of the Kangankunde project is fully funded through to production, backed by a long-term strategic partnership and offtake deal with major mineral sands producer Iluka Resources.