Lindian Resources Limited, an Australian Stock Exchange (ASX)-listed owner of Kangankunde Rare Earth Project, in Balaka has secured exclusive access and an option to acquire 13 389 metric tonnes (MT) of feedstock for its processing facility in Kazakhstan.
The move strengthens the mining’s ability to become an integrated rare earths producer.
In an update on its website www.lindianresources.com.au, the mining firm said the move will enable it to be producing high-value products from its Kangankunde Rare Earth concentrates in Balaka District.
Apart from that, Lindian Resources has also secured 12 months of exclusivity over a further 120 000MT of un-extracted material, creating a potential pathway to access between 28 389 and 33 389MT in total.
Project in Balaka District. | Nation
“It gives us flexibility around first feed and supports our longer-term objective,” reads the update in part.
Lindian Resources Limited executive director Zac Komur is quoted in the update as having said that the acquisition allows the mining firm to capture 100 percent of the downstream margin while securing exclusive marketing rights and complete control over production and future expansion, giving shareholders full exposure to future cash flows.
Few months ago, Lindian Resources Limited terminated an off-take agreement with Gerald Metals for monazite concentrate for its Kangankunde Rare Earths Project in a move analysts described as strategic as it gives the miner marketing flexibility.
The firm said the termination of the 2023 off-take deal, which was for the sale and purchase of 45 000MT metric tonnes of monazite concentrate over a 60-month period, enables it to utilise its Kazakhstan processing facility more.
Geoscience and mining expert Ignatius Kamwanje said in an interview on Friday that the developments are strategic for the miner as they will enable flexibility to sell to whoever they choose and at prices they negotiate.
He said: “Strategically, Lindian Resources wants to supply the product direct and they don’t want an intermediary.”
“It also gives the company the flexibility to sell either premium monazite concentrate or the higher-value mixed rare earth carbonate product, depending on which market offers the stronger commercial return.”
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.
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.
