Australian Stock Exchange-listed Lindian Resources Limited, which owns the Kangankunde Rare Earth Project in Balaka, Malawi, has signed a technology and engineering services agreement with French firm Carester. The deal aims to develop an oxide separation facility, marking a significant step in Lindian's downstream strategy. The facility is designed to produce magnet-quality rare earth oxide and carbonate, enabling Lindian to participate in the production of higher-value magnet rare earth products.
The agreement with Carester includes a long-term off-take agreement for up to 20 years for both mixed heavy rare earths compound and a right of first refusal for mixed heavy rare earths carbonate. Lindian Resources Limited executive chairperson Robert Martin said the partnership brings world-class separation expertise and a long-term route to market for their heavy rare earth production. This move is expected to expand markets and capture more value from the rare earths produced.
The Kangankunde project in Balaka is on track for commissioning in November this year, with the goal of achieving first production during the fourth quarter. The project has been in development for over a decade, and its success is seen as a significant milestone for Malawi's mining sector. The project's feasibility study report estimates that it will generate $114 million per year over 40 years.
Lindian Resources Limited had previously terminated an off-take agreement with United States-based Gerald Metals for monazite concentrate. Geoscience expert Ignatius Kamwanje noted that this strategic move allows Lindian to sell directly to buyers of their choice and negotiate prices. Chamber of Mines and Energy national coordinator Grain Malunga highlighted that the project's success reflects a decade of development.
The Kangankunde Mine hosts a substantial resource grading, with 261 million tonnes at 2.19 percent total rare earth oxides. The mine's high-grade starter zone, earmarked for early production, comprises 26 million tonnes. Malawi's entry into rare earth production is expected to diversify the global supply chain, reducing dependence on China and strengthening Africa's mineral sector.
The partnership with Carester and the development of the oxide separation facility are crucial steps in Lindian's strategy to expand its market presence and increase the value of its rare earth production. The company's efforts to develop the Kangankunde project are seen as a significant contribution to Malawi's economic growth.
As the global demand for rare earth minerals continues to grow, Lindian Resources Limited's Kangankunde project is poised to play a significant role in meeting this demand. With the support of Carester, Lindian aims to establish itself as a major player in the rare earth market, capitalizing on the vast resources available at the Kangankunde mine.
Key points
- Lindian Resources Limited partners with Carester to develop an oxide separation facility for rare earth production
- The Kangankunde project is on track for commissioning in November this year, with first production expected in the fourth quarter
- The project is expected to generate $114 million per year over 40 years, contributing significantly to Malawi's economic growth
