Australian Stock Exchange – listed Lindian Resources Limited, which owns Kangankunde Rare Earth Project in Balaka, has signed a technology and engineering services agreement with a French firm Carester to develop an oxide separation facility.
In an update, the miner said it has also executed a long-term off-take agreement for up to 20 years for both mixed heavy rare earths compound and right of first refusal for mixed heavy rare earths carbonate.
Reads part of the update: “The proposed facility represents the next major step in Lindian’s downstream strategy and is being designed to produce magnet-quality rare earth oxide and carbonate.
“This extends Lindian’s participation beyond concentrate and mixed carbonate production into separated, higher-value magnet rare earth products.”
Lindian Resources Limited executive chairperson Robert Martin is quoted in the update as having said that the agreement with Carester represents another huge step in its strategy to expand markets and to capture more of the value from the rare earths that it produces.
“Carester brings both world-class separation expertise and a long-term route to market for our heavy rare earth production,” he said.
The agreement with Carester comes at a time stage one of Kangankunde project in Balaka is on track for commissioning in November this year as it targets to achieve first production during the fourth quarter of this year.
Earlier this year, Lindian Resources Limited terminated an off-take agreement with United States-based Gerald Metals for monazite concentrate for its Kangankunde Rare Earths Project in a move experts described as strategic.
In an interview, geoscience expert Ignatius Kamwanje said the move will enable the firm to sell to whoever they choose and at prices they negotiate.
“Strategically, Lindian Resources wants to supply the product direct and they don’t want an intermediary,” he said.
Chamber of Mines and Energy national coordinator Grain Malunga, in an earlier interview, said that the project’s success reflects a decade of development.
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 the company’s feasibility study report released earlier this year.
Kangankunde hosts a 261 million tonne resource grading, 2.19 percent total rare earth oxides, including a high-grade starter zone of 26 million tonnes earmarked for early production.
