Lindian Resources Limited, a firm that owns Kangankunde Mine in Balaka District, has secured a binding off-take deal of 30 000 metric tonnes (MT) of rare earths with International Refinery Group ahead of its first production this December.
Brokered by its Singapore-based subsidiary, Lindian Global Rare Earths Pte. Limited, the off-take enables International Refinery Group to buy 10 000MT rare earth concentrates from Kangankunde’s stage one and 20 000MT from stage two over a five-year term.
| Courtesy of Lindian Resources
The deal comes at a time Lindian Resources Limited is expecting to commission the mine this month while expecting first production next month and first export in January 2027.
In an update, the firm said the new deal ensures that the company has multiple global off-take arrangements with customers in many jurisdictions.
Reads part of the update: “The counterparty and geographic mix provides Lindian exposure to Western government-backed refining capacity in Australia and Europe in addition to established global markets while reducing reliance on any single customer, market or pricing mechanism.”
Together with the previously announced off-take agreements with Iluka Resources in Australia and Carester in France, Lindian Resources Limited has now developed a diversified global customer base, with 45 000MT having also secured for Stage two expansion.
Meanwhile, the firm said it expects its first container export sea freight from Nacala Port in Mozambique in January 2027 with monthly deliveries of its monazite concentrate thereafter.
Lindian Resources Limited executive chairperson Robert Martin is quoted in the update as having said the fresh binding off-take agreement means its Stage One capacity is now fully allocated between its off-take partners and its Sareco facility, and with over 45 000MTof Stage Two volumes procured.
In an interview on Tuesday, Malawi Mining Investment Company chief executive officer Leonard Kalindekafe said off-takers provide the needed market guarantee, which is a critical stage in advanced mining projects.
He said: “In mining and project financing, an off-taker is a party that agrees to purchase the goods or services produced by a project.
“An off-take agreement provides a guaranteed market for the outputs of the project.”
Few months ago, Lindian Resources Limited terminated an off-take agreement with Gerald Metals for monazite concentrate for the project in a move analysts described as strategic as it gives the miner marketing flexibility and priorisation of its Sareco processing plant.
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 as the United States and Europe seek alternative sources.
When operational, the Kangankunde Mine is projected to generate $114 million (about K205.2 billion) per year over 40 years, according to a feasibility study report released by the company this year.
