Lindian Resources Limited says the ongoing United States (US) and China trade war that saw the former raising tariffs and restricting Chinese imports, positions Kangankunde Rare Earth Project as a critical export to the west.
In an update on Friday, the company, which is at a mining development stage at Kangankunde Rare Earth Project in Balaka District, said China’s reaction to restrict its rare earth exports means the US will need alternative supply sources.
He said this makes the project, which will reach extraction stage next year, critical to the US market which needs rare earths for its manufacturing industry.
Reads the statement in part: “As the US slaps tariffs on Chinese goods and China responds with rare earth export controls, global supply chains are being redefined.
“Beijing’s move targets rare earth elements, namely samarium, gadolinium, terbium, dysprosium, lutetium, scandium and yttrium, which are vital for defence systems, electric vehicles, wind turbines and high-performance magnets.”
The statement further says that with tighter export licences and dual-use scrutiny, this directly impacts western and Japanese manufacturers, slowing supply, stalling magnet production and increasing urgency for alternate sources.
Geologist and mining consultant Ignatius Kamwanje said in an interview on Sunday that Lindian Resources, which signed an off-take agreement with US companies, is well positioned to benefit from the current trade war because of the US’ desperate need for rare earths.
“In as much as US imposed tariffs, it is desperately in need of rare earths. Malawi shall indeed be the critical supplier. China placed export restrictions of rare earths as part of sweeping response to US tariffs,” he said.
Lindian resources, a medium-scale mining licence holder currently negotiating a mining development agreement, has started its early-stage site works, a key milestone in the delivery of one of the world’s most significant undeveloped rare earth assets.
Following on from the start of construction of a new five-kilometre access road in February 2025, the company has started initial civil and infrastructure development.
“These works form part of a broader acceleration strategy to de-risk stage one construction and fast-track development. This proactive step underscores the new management team’s focused approach to accelerating the delivery of Stage one of the project,” reads the company’s update.
Lindian Resources chief executive officer Alwyn Vorster told investors in an online presentation last December that the $794 million (about K1.4 trillion) valued project, which would be generating annual revenue of $114 million (about K200 billion) for over 40 years, is on the right track having secured funding for phase one construction in readiness for extraction.
Lindian Resources Limited touts its Kangankunde project as one of the world’s largest rare earths deposits and is top-tier in terms of high rare earth grade and low levels of impurities and radioactive minerals.
A feasibility study completed in June 2024 demonstrated that the project has one of the lowest capital and operating cost structures of rare earths projects.
