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 reported that construction activity at the project is continuing to advance across all major work fronts, with strong progress recorded across the process plant, nonprocess infrastructure and mining activities.

Key milestones achieved include the start of process plant civil works and foundations, continued progress on the 33 kV powerline and associated site infrastructure, development of the haul road and run-of-mine (RoM) pad, mobilisation of key earthmoving equipment and the completion of important regulatory approvals supporting operational readiness.

The company has reported that the project remains on schedule, with front-end commissioning targeted for October and first production targeted 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.