Lindian Resources, an Australian Securities Exchange (ASX)-listed entity, has obtained formal approval from the Malawi Mining and Minerals Regulatory Authority (MMRA) to extend its mining licence area for the Kangankunde Rare Earths Project from 900 hectares (ha) to 2,500ha.
The approval expands the company’s Medium Scale Mining Licence ML0290/22, situated in the Balaka District, Malawi.
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It broadens Lindian’s operational scope and allows for the expedited progression of the project’s stage two expansion.
The endorsement from the Malawian Government provides a level of regulatory certainty that is expected to mitigate risks associated with the development of the expansion, which will run concurrently with the existing stage one process plant development.
The expansion is subject to the completion of a feasibility study and the necessary clearance from the Malawi Environment Protection Authority within a six-month period.
Lindian has indicated that this expansion will lead to increased job opportunities, local procurement and infrastructure improvements in the Balaka district.
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By GlobalDataThe enlarged licence area is expected to boost production capacity from the initial stage one target of 15,300 tonnes per annum (tpa) of monazite concentrate to an estimated 75,000–100,000tpa.
The new licence area will facilitate modular development, phased infrastructure implementation and flexible production strategies that can adapt to market changes.
The project is noted for its high-grade deposit, featuring a total rare earths oxide (TREO) grade of 2.9% over the life of the mine and a 3.1% TREO for the first five years, producing a monazite concentrate with a 55% TREO grade, characterised by low levels of deleterious elements and radionuclides.
Lindian has secured interest from various offtake parties including Iluka for long-term partnerships.
A recently established binding strategic partnership with Iluka encompasses both stage one and stage two production expansions.
The stage two expansion will incorporate a right of first refusal (ROFR) mechanism, allowing Iluka to provide project financing and secure additional offtake volumes.
If Iluka offers debt funding covering at least 50% of the stage two expansion costs, its ROFR will apply to a maximum of 25,000 dry tonnes per annum of additional concentrate for a duration of 15 years, amounting to a total of 375,000t.
With this approval, a substantial high-grade resource available and Iluka’s strategic partnership in place for stage two, Lindian Resources is set to formulate a modular production plan alongside the ongoing stage one process plant development.
Lindian Resources executive chairman Robert Martin said: “The upgrade of our Stage 2 expansion area from an exploration licence to a mining licence allows Lindian to work in parallel on our larger Stage 2 expansion whilst using the learnings from the development of our Stage 1 production facility to ensure that we optimise our processing flow sheets and recoveries.
“This will also allow Lindian to capitalise on our ability to be the next rare earth producer to market and to capture a larger market share.
“The company continues to field additional inbound enquiries and is currently working on multiple pathways for further strategic offtake and funding agreements and will update the market in due course.”
