How Lindian’s $91.5M Boost Sets Kangankunde on Path to Rare Earths Production

Strategic Milestones Propel Kangankunde Forward

Lindian Resources Limited has marked a pivotal quarter with the announcement of a Final Investment Decision (FID) for the Stage 1 development of its Kangankunde Rare Earths Project in Malawi. This milestone follows a highly successful A$91.5 million institutional placement, which attracted strong demand from both Australian and international investors, and a landmark strategic partnership with Iluka Resources. The partnership includes a US$20 million secured construction loan and a binding 15-year offtake agreement for premium monazite concentrate, cementing Kangankunde’s position in the global rare earths supply chain.

The FID signals Lindian’s transition from planning to execution, with full funding secured to carry the project through to first production, targeted for the fourth quarter of 2026. Early construction works have been completed on time and within budget, including a 5.5-kilometre access road and essential site infrastructure, setting a solid foundation for full-scale development.

Expanded Licence and Growth Prospects

During the quarter, Lindian secured approval to expand the Kangankunde mining licence from 900 hectares to 2,500 hectares. This expansion is a critical enabler for a planned Stage 2 production increase, with the company appointing DRA Pacific to conduct a concept study assessing production scenarios ranging from 50,000 to 100,000 tonnes per annum of concentrate. While these are study cases rather than production targets, they highlight the significant scalability potential of the project.

The expanded licence footprint provides the necessary regulatory and physical space to support infrastructure development and modular plant expansions, underpinning Lindian’s ambition to establish Kangankunde as a multi-decade rare earths producer of global significance.

Operational Efficiency Through Owner-Operator Model

Lindian has adopted an owner-operator mining model at Kangankunde, a strategic shift from contract mining that is expected to reduce mining execution costs by approximately 30%, from around US$12 per tonne to US$8.40 per tonne. This approach offers greater control over scheduling, quality, and safety, while fostering local workforce development under the leadership of newly appointed Mining Manager Samuel Boachie, a seasoned professional with extensive African mining experience.

Fleet procurement is well advanced, with Komatsu and Sandvik equipment ordered and scheduled for delivery ahead of mining commencement in early 2026. This model positions Kangankunde among the lowest-cost rare earth producers globally, supported by a simple open-pit design and a favourable strip ratio.

Leadership and Community Engagement

Lindian has strengthened its leadership team with the appointment of Zac Komur as Executive Director, tasked with overseeing project delivery for both Stage 1 and Stage 2. Komur brings over 25 years of global project execution experience, including senior roles at major mining and energy companies.

Community engagement remains a cornerstone of Lindian’s approach, with ongoing collaboration with local leaders and stakeholders in Malawi’s Balaka District. The company’s Community Engagement Plan focuses on employment, training, local procurement, and infrastructure improvements, reinforcing Lindian’s commitment to sustainable development and long-term partnerships.

Financial Position and Outlook

Ending the quarter with a robust cash position of A$85.1 million, Lindian is well capitalised to advance construction and operational readiness. The combination of institutional funding and strategic partnership support significantly de-risks the project’s execution phase.

Looking ahead, Lindian is poised to deliver first production by Q4 2026, with parallel efforts underway to define and finance Stage 2 expansion. The company’s rare earth concentrate, particularly its premium monazite product, is strategically aligned with downstream processing facilities in Australia, including Iluka’s Eneabba refinery, bolstering its role in critical mineral supply chains.