Lindian locks in support facility deals for Malawian rare earths hub

Lindian Resources has shifted its Kangankunde rare earths project into high gear after awarding all major non-process infrastructure (NPI) contracts, clearing the decks ahead of full-scale mine construction in Malawi.

The move comes after the company took full ownership of its giant rare-earth deposit earlier in the week, having paid US$10 million to exercise an option to acquire the remaining 33 per cent of the project from a local vendor.

Kangankunde packs serious geological muscle, carrying a 23.7-million-tonne probable reserve at 2.9 per cent total rare earths oxide (TREO), underpinned by a hefty 61-million-tonne indicated resource grading 2.43 per cent — numbers that cement its status as one of the most significant undeveloped, high-grade rare earths deposits in the world.

With work already underway across multiple packages, contractors mobilised and the mining fleet rolling in, the company says the construction milestone materially boosts execution confidence ahead of first production in late 2026.

The company has now locked up deals covering everything from the mining workshop and administration hub to the fuel farm, explosives magazine, power infrastructure, perimeter security and tailings management. According to Lindian, contract costs landed well within the budget limits set out in last year’s feasibility study.

Management says contractors are now on the ground, with early works already wrapped up. The company’s Komatsu-supplied mining fleet is also rumbling north from South Africa, with the first machines due to roll in this month.

Meanwhile, earthworks for the project’s all-important mobile workshop, which will house full maintenance capacity, servicing bays, CCTV and spares storage, are 60 per cent complete with construction set to kick off next week.

On the power front, the national electricity utility, ESCOM Malawi has been awarded the contract to develop the power line corridor that will energise Kangankunde’s first-stage operations. The scope includes clearing, excavations, foundation construction, pole installation, line stringing and transformer work - all designed to deliver an initial 3MW supply supported by solar and backup generation. Excavation and pole installation are due to begin shortly.

Fuel supply - a critical lifeline during the build and into steady-state mining - is being prepared, with the erection of a new fuel farm housing a pair of 40,000-litre tanks, dispensing systems, fire suppression and security infrastructure. The facility will feed both construction equipment and mining operations as the project ramps up.

The new administrative building - complete with management offices, technical workspaces, IT facilities, logistics, and a site clinic - is also taking shape, with foundations currently being laid. Once complete, the structure will serve as Kangankunde’s command centre during construction and into production.

Other work, including the explosives magazine - complete with storage units, CCTV and compliant fencing - is progressing, while procurement for the nine-kilometre perimeter fence is underway ahead of phased installation to match Kangankunde’s construction schedule.

Awarding all NPI contracts is a major step forward in positioning Kangankunde for construction and commissioning. The scopes have been tightly integrated into our schedule, and their award further strengthens our commitment to achieving first commercial production in 2026.

Lindian’s push is being fuelled by serious backing, including a recent $91.5 million capital raise and a landmark 15-year offtake deal with heavy minerals heavyweight Iluka Resources. The agreement locks in sales of 6000 tonnes of rare earths concentrate a year which will feed into Iluka’s Eneabba refinery in WA, giving Kangankunde a blue-chip customer and a long runway of demand as the project powers towards production.

With the ink now dry on every major non-process infrastructure contract, the mining fleet inbound, long-term funding secured and offtake locked away, Lindian appears to be clearing each hurdle with purpose.

If construction continues at this clip, Kangankunde is shaping up to become one of the rare earth sector’s standout new arrivals when first production lands in late 2026.

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