Lindian Resources Limited has secured approval for 91.5 million Australian dollar (about K102.7 billion) final investment, paving the way for the completion of the Kangankunde Rare Earth Mine construction in Balaka District.
The mine’s production is expected to start in the fourth quarter of 2026.
In an announcement posted on Australian Securities Exchange (ASX), the miner said the investment by two new institutional investors will be made in two tranches of share placements.
Reads the notice in part: “Following the strategic partnership announced with Iluka Resources [binding long-term off-take agreement and debt funding] and successful institutional placement for the target quantum, the Lindian Board has approved a final investment decision for main construction of stage one of its world-class Kangankunde Rare Earths Project.”
The notice indicated that the placement proceeds will also be applied to increase ownership of Kangankunde to 100 percent, complete engineering works for stage two expansion along with a phased infrastructure rollout.
This means Kangankunde is now fully-funded for project completion, including capital expenditure, contingency and capitalised operating cost.
Lindian Resources Limited executive chairman Robert Martin is quoted as having expressed delight with the support from new institutional investors, saying the demand was in excess of funds sought.
He said: “The demand at a large premium and the quality of the investor base attracted, confirms to the market the support and understanding that our tier one Kangankunde Rare Earths Project has in the global investment community.
“To be able to declare the final investment decision sets Lindian on the pathway to being the world’s next rare earths producer, a truly remarkable position. We now have a very clear, fully funded and unencumbered pathway to production.”
Martin said with the company now fully funded, the firm will accelerate the already well-advanced pathways to production, including finalising major contracts, placing orders for long lead time items, awarding services contracts and fast-tracking their larger stage two studies.
Earlier this year, the firm’s chief executive Alwyn Vorster said the company started advanced plant construction and sourcing funding while targeting commissioning in 2026.
Lindian Resources Limited has 67 percent stake in Kangankunde Mine after paying $35 million (K61 billion) placement to Rift Valley Resources and is expected to pay $10 million (K17.5 billion) final tranche for 100 percent ownership by first commercial production.
In an interview on Friday, geologist Grain Malunga said Lindian Resources’ progress is in line with the Chamber of Mines and Energy’s projection.
“The project has proven successful from the past decade or so and having reached advanced stages of funding solutions and development, it is pleasing that they will soon start generating forex for the country,” he said.
When operational, Kangankunde Mine is projected to generate $114 million (about K200 billion) per year over a 40-year period, according to a feasibility study report the company released this year, while output is also estimated to increase from the initial 15 000 metric tonnes (MT) to 50 000MT annually.
From the operations, the Malawi Government will earn $5.56 million (about K9.7 billion) in royalties on top of income tax and other taxes from the rare earth minerals.
