Lindian readies first blast at Malawian rare earths mine

Lindian Resources is rapidly transforming its giant Kangankunde project in Malawi from a construction site into an operating rare earths mine, with key milestones now ticked off, bringing it to the final run before commissioning and production.

With the haul road to the stage one pit complete, explosives on site and a production drill rig now boring out the first blast pattern, the company says Kangankunde is edging closer to readiness. Front-end commissioning remains targeted for October, with practical completion expected in mid-November ahead of first production in the fourth quarter of 2026.

In a significant sign of progress, about 27,000 tonnes of ore have already been stockpiled on the run-of-mine, or “ROM”, pad to support plant commissioning and ramp-up.

Construction progress is continuing across the site, with Lindian reporting that processing plant civil and structural works are running ahead of schedule. All major equipment has now been purchased and is being mobilised to site.

The tailings storage facility is almost 50 per cent complete and a 27-kilometre power corridor with 269 poles has been installed ahead of grid connection. The company has also completed all 17 planned water bores and secured water permits.

The production push is aimed at cracking open one of the world’s largest undeveloped rare earths deposits. Kangankunde hosts a 261-million-tonne resource grading 2.19 per cent total rare earth oxides (TREO), including a high-grade starter zone of 26 million tonnes grading 3.7 per cent TREO earmarked for early production.

Previous feasibility work indicated the project could operate in the lowest quartile among global rare earth producers, helping explain why Lindian has attracted a string of strategic partners, downstream processing pathways and funding as development accelerates.

Lindian Resources executive director Zac Komur said: “We are now moving rapidly toward mining operations. Access to the top of Kangankunde for the Stage 1 pit is established, the haul road is complete, approximately 27,000 tonnes of ore is on the ROM pad, explosives are onsite, the explosives magazine has been signed off, and the production drill rig is drilling the first blast pattern.”

Kangankunde forms the foundation of Lindian’s vertically integrated rare earths strategy, which includes a controlling interest in the SARECO processing facility in Kazakhstan.

Just last week, Lindian agreed to terminate a long-standing monazite sales agreement with Gerald Metals. Management says the move restores control over product sales, pricing and allocation while providing greater flexibility to support its downstream processing ambitions.

The project is also backed by a long-term offtake arrangement with Iluka Resources and sits at the centre of Lindian’s strategy to produce both concentrate and higher-value rare earth products.

The construction push is being backed by one of the stronger balance sheets in the junior rare earths sector. Lindian is fully funded for stage one through a recent A$100 million institutional placement, now supplemented with local Malawi financing. Management says the funding provides a largely debt-free pathway to production.

While management remains focused on delivering first production, the bigger prize looming beyond start-up may be the stage two expansion. A feasibility study, led by Perth-based DRA Global and due for completion in December, is evaluating a 4-million-tonne-per-annum development pathway designed to lift total concentrate capacity from 20,000 tonnes to about 120,000 tonnes of concentrate per annum. 

To support that work, the company has completed a 7764m stage two infill drilling program. Pending assays will feed into an updated mineral resource estimate, helping underpin the expansion study and future mine planning.

As governments and manufacturers race to secure critical minerals supply outside traditional sources, Kangankunde is emerging as one of a limited number of large-scale rare earth projects advancing towards near-term production.

If Lindian can keep nailing the near-term milestones and deliver its project into production on schedule, the company could soon shift from being another hopeful rare earths developer to one of the few ASX juniors with a genuine foothold in the global supply chain. 

With first blast, commissioning and a potentially game-changing stage two expansion all looming, the next six months could be pivotal for both Kangankunde and the share price.

Is your ASX-listed company doing something interesting? Contact: matt.birney@businessnews.com.au