Mining firm Lindian Resources Limited says it will start advanced plant construction and finalise funding discussions for its Kangankunde Rare Earth Project in Balaka in 2025 while targeting commissioning in 2026.
In a virtual presentation to shareholders last week, Lindian Resources Limited chief executive officer Alwyn Vorster said this year, the firm conducted a feasibility study, community engagement and started sourcing funding,
He said in 2025, they will finalise funding and plant construction.
Said Vorster: “Current activities include funding stage one and two, off-take agreements, site support infrastructure development, contracts design and construction and metallurgical drilling and flow sheet optimisation.”
The firm’s outlined schedule shows that processing plant procurement and construction are also expected to be completed by end 2025 with commissioning expected in early 2026.
Lindian Resources Limited, which currently has 67 percent stake in Kangankunde Mine after paying a strategic $35 million (K61 billion) placement to Rift Valley Resources and is expected to pay a $10 million (K17.5 billion) final tranche for 100 percent ownership by first commercial production.
In an interview on Tuesday, geologist Grain Malunga said Lindian Resources’ progress is in line with the Chamber of Mines and Energy’s projection that three mining projects, namely Kayerekera Uranium Mine in Karonga, Kanyika Niobium Project in Mzimba and Kangankunde Project in Balaka would be operational by 2027.
“The said projects have 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.
Output is also estimated to increase from the initial 15 000 metric tonnes (MT) to 50 000MT annually, the report said.
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 mineral types called neodymium and praseodymium, which are used in high-tech industries for high energy efficiency and renewable energy innovations.
China dominates the rare earth’s industry, supplying 75 percent of global output at the mine level as the global rare earth industry is estimated at $7.4 billion, according to the feasibility study.
