Rare earths miner Lindian Resources Limited has said access to grid power is a major consideration for its expansion plans for Kangankunde Rare Earths Project in Balaka District.
The company’s executive director Zekai Komur, speaking yesterday when Minister of Mining Thoko Tembo visited the mine site, said they are assessing an expansion that will take ore production from the planned 500 000 metric tonnes (MT) a year under stage one to about four million MT, subject to the outcome of the studies and power supply.
the mining site. | Grace Phiri
“For stage two, as part of the mine expansion, we are looking at a major solar farm and 20 megawatts [MW] of Escom power. For phase one, the processing plant will require about three megawatts, with Lindian planning to combine grid electricity with solar power and battery storage,” he said.
The electricity challenge comes as the World Bank estimates that Malawi’s mining industry could require between 60 and 100MW of power in the medium-term and up to 160MW in the long-term, underscoring the need to expand reliable generation and transmission capacity.
The World Bank also identified reliable energy and the investment climate as major constraints to unlocking Malawi’s mining potential, estimating that the sector could generate more than $30 billion in exports between 2026 and 2040 if key constraints are addressed.
Komur said the Australian Stock Exchange-listed company could expand its plant and achieve a five-fold increase in production.
“Our stage two expansion studies are underway, examining a significant expansion of the operation and the opportunity to make much greater use of the substantial resource that exists here,” he said.
Komur said the expanded operation is projected to produce about 100 000MT of rare earth concentrate annually, with the company targeting production around 2028 or 2029.
Lindian Resources has also applied to upgrade the project’s mining licence from medium-scale to large-scale to reflect the planned expansion.
In an interview, Tembo said electricity, transport and the cost of doing business remain challenges for mining projects, adding that government is working with mining companies to address the infrastructure gaps.
“We are partners in this. We need to make sure that we provide the infrastructure that is required for these mining companies to operate efficiently,” the minister said.
Escom is said to have told the company to wait for the commissioning of Mozambique-Malawi Power Interconnector or Mpatamanga Hydro Power Station being developed.
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.
