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 Resources has successfully completed the first production blast, marking the start of active mining operations and another major milestone in the company's continued transition from project developer to rare earth producer.

In less than 12 months from the final investment decision, Lindian has advanced from construction to mining, with ore already delivered to the  run-of-mine (RoM) stockpile ahead of process plant commissioning later this year.

By starting mining ahead of commissioning and establishing RoM ore inventory, Lindian Resources executive director Zac Komur has said the company is positioning the plant for ore availability from the start, supporting a smoother startup and, thus, strengthening the project’s pathway to first production in the fourth quarter of this year.

The inaugural blast comprised 206 production holes drilled over 566.5 m, with about 3.2 t of ammonium nitrate fuel oil explosives loaded across the blast pattern. The blast successfully fragmented about 13 100 t of material, including an estimated 5 500 t of ore, delivering excellent fragmentation consistent with design expectations.

Excavation and haulage activities started immediately following the blast, with ore now being transported on the newly completed haul road to establish the project's initial RoM stockpile ahead of process plant commissioning.

With mining and ore stockpiling now under way, Kangankunde has entered the final phase of development ahead of commissioning.

Construction activities are continuing across all major work fronts, with front-end commissioning targeted for October, practical completion for mid-November and first production remaining on schedule for the fourth quarter of this year.

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.